Hong Kong’s Securities and Exchange Commission (SFC) has been reprimanded and imposed a fine on Freeman Commodities Limited, known as Arta Global Futures Limited, $ 3.4 million for failure in compliance with the fight against money laundering and otherwise compliance with Between June 2017 and December 2018.
The SFC also suspended Mr. Li Chun Kei, a former responsible officer (RO), Managing Director and Director of the Freeman Business Line, for four months from June 20, 2025 to October 19, 2025, taking into account that his failures were in part.
SFC’s survey found that Freeman did not conduct any due diligence in the systems provided by the Customer (CSSS) used by 89 customers to place orders during the material time. As a result, Freeman was not able to evaluate and manage the money laundering properly and terrorism funding (ML/TF) and other risks related to the use of such CSS by its customers.
In addition, deposits made in six customer accounts were incompatible with their declared financial profiles. As a result of his failure to maintain an effective surveillance system, Freeman has failed to detect, evaluate and conduct appropriate deposits and tackles the relevant ML/TF risks.
The SFC also found that Freeman has failed to implement an effective continuing tracking system to detect suspicious trading standards to customer accounts, as there were frequent and large transactions in the six customer accounts and in many cases purchased orders and selling themselves for the same contracts.
The SFC is of the view that Freeman’s systems and controls were inadequate and ineffective and failed to ensure compliance with the funding decline against money laundering and the fight against terrorism, the AML guideline and the Code of Conduct.
In the decision of disciplinary sanctions against Freeman and Li, the SFC took into account:
- The severity of Freeman and Li failures to monitor customer activities and implement adequate and effective AML/CFT systems and controls could undermine public confidence and harm market integrity.
- The importance of a strong deterrent message in the market that these failures are not acceptable.
- Freeman and Li have different purely disciplinary files. and
- Arta’s financial position and the cessation of her business.