Monetary Authority takes disciplinary action against 33 Financial Services Limited for contravention of Payment Systems and Stored Value Facilities Ordinance
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) announced today (July 22) that it had completed an investigation and disciplinary proceedings for 33 Financial Services Limited (33FS) under the Payment Systems and Stored Value Facilities Ordinance (Chapter 584 of the Laws of Hong Kong) (PSSVFO). The Monetary Authority (MA) has reprimanded and ordered 33FS to pay a pecuniary penalty of HK$1,600,000 for contravening section 8Q of the PSSVFO as it failed to fulfil the minimum criterion under section 6(2)(b) of Part 2 of Schedule 3 to the PSSVFO.
The disciplinary action (Note 1) follows an investigation by the HKMA which found that, during the period from December 1, 2019 to August 31, 2023, 33FS failed to have in place adequate and appropriate systems of control to comply with the relevant paragraphs of the Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Stored Value Facility (SVF) Licensees) (Guideline) (Note 2).
Specifically, the contravention relates to deficiencies in 33FS' systems of control in three areas, namely:
obtaining sufficient information on the purpose and intended nature of the business relationships with customers;
carrying out customer due diligence (CDD) measures on the business entities of which the individual customers acted on behalf; and
ensuring the identification and verification of identity of customers was properly performed and documented by its business partners, which were acting as outsourced entities for 33FS, in accordance with its internal requirement.
In deciding the disciplinary action, the MA has taken into account the relevant circumstances and factors, including:
the seriousness of the investigation findings as well as the fact that 33FS has previous disciplinary record in respect of the PSSVFO;
the need to send a clear deterrent message to the industry about the importance of effective controls and procedures to address money laundering (ML) and terrorist financing (TF) risks;
33FS has taken remedial measures to address the deficiencies identified by the HKMA and enhance its systems of control; and
33FS is co-operative in resolving concerns identified by the HKMA.
The Executive Director (Enforcement and AML) of the HKMA, Mr Raymond Chan,said, "CDD measures are crucial for combatting ML and TF risks. Verifying the identity of customers and understanding the purpose and intended nature of the business relationships are essential elements of CDD measures. SVF licensees should ensure that they have effective CDD measures in place."
Relevant link: Statement of Disciplinary Action
Note 1: The disciplinary action is taken under section 33Q of the PSSVFO.
Note 2: Paragraphs 4.6.1, 4.1.3(a), 4.1.3(d), 4.4.4, and 4.3.16 of the Guideline (October 2018 version and September 2020 version).
Source: AI-found images
CFS to follow up certain batches of powdered infant and young children formula with possible presence of Cereulide produced by Bacillus cereus
The Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department (FEHD) today (January 10) said that, it took initiative to meet with Nestlé Hong Kong again today, and confirmed the company's today announcement of an additional batch of powdered infant and young children formula suspected to have possibly used the raw material concerned. Nestlé Hong Kong has voluntarily stopped sales, removed from shelves the affected products and has initiated a precautionary recall. The CFS has collected samples of powdered infant and young children formula from the market for Bacillus cereus testing, the test results so far were satisfactory. The Environmental and Ecology Bureau is also closely monitoring the supply situation of other formula milk powder and maintaining communication with other major suppliers. It is noted that there is sufficient formula milk powder to meet the demand.
The spokesman said, the CFS has been actively following up on Nestlé company's voluntary and precautionary recalls of certain batches of its powdered infant and young children formula in certain areas in Europe due to possible presence of Cereulide produced by Bacillus cereus in the individual raw material. According to the latest information from Nestlé Hong Kong today, an additional batch of its powdered infant and young children formula imported into Hong Kong might have used the raw material concerned. The CFS had earlier enhanced surveillance in the market and collected a sample from the above batch for testing of Bacillus cereus. The test result of the sample was satisfactory. Nevertheless, as a precautionary measure, Nestlé Hong Kong has voluntarily stopped sales, removed from shelves the affected products and has initiated a precautionary recall.
Product details are as follows:
Product name (Net weight): NAN PRO 1 2 HMO (800g)
Batch number: 51670742F2
Best-before date: June 16, 2027
Place of Origin: Germany
"The CFS met Nestlé Hong Kong again today, urging them to properly handle the product recall issue and respond to public enquiries, in order to safeguard consumers' legitimate rights and interests. In addition, the CFS and Nestlé Hong Kong have jointly followed up, six suspected affected batches of infant and young children formula products that had not entered the market were marked and sealed. An additional 15 batches are currently en route to Hong Kong and will also be marked and sealed upon arrival. The CFS will continue to closely monitor the recall matters and remain fully committed to ensuring food safety, " the spokesman said.
Nestlé Hong Kong has initiated a recall of the affected batches of the products concerned. For enquiries about the recall, members of the public may contact the company through the following channels:
Consumer services hotline: 2599 8874 / 2797 6031/ 2179 8136 (Monday to Sunday, 9am to 9pm)
Email: consumerservices@hk.nestle.com
WhatsApp: 5283 4139 (NESTLÉ® NAN®) / 2599 8871 (Wyeth® Nutrition)
Online form: forms.office.com/e/BhqMhWfsUG?origin=lprLink
Consumers may choose to bring along the products (brand new or opened) for refund at place of purchase, or at exclusive service counters of Nestlé Nutrition Services from January 13 (Tuesday) onwards, to settle the recall and refund of the batches of the products concerned. Details of the exclusive service counters are as follows:
Kowloon Services Counter
Address: G/F, Park Hovan Commercial Building, 18 Hillwood Road, Tsim Sha Tsui, Kowloon (MTR Jordon Station Exit D)
Contact number: 3996 8196
Office hour: Monday to Saturday, 11am to 7.30pm; Sunday, 1pm to 5.30pm (except public holidays)
Hong Kong Services Counter
Address: 1/F, Ka Nin Wah Commercial Building, 423-425 Hennessy Road, Hong Kong (MTR Causeway Bay Station Exit B)
Contact number: 3996 8197
Office hour: Monday to Saturday, 11am to 7.30pm (except Sundays and public holidays)
The CFS, through its Food Incident Surveillance System, noted earlier that certain batches of Nestlé powdered infant formula were being voluntarily recalled in Europe due to possible contamination with Bacillus cereus. Upon learning of the incident, the CFS has immediately initiated follow up actions, published food incident posts to inform the public and the trade about the issue, and has been actively following up on the incident and enhanced surveillance.
Over the past three days (as of 4pm on January 9), the FEHD received a total of 18 food complaints and enquiries suspected to be related to the infant and young children formula products, including one anonymous complaint without contact information. The CFS and the Environmental Hygiene Branch have promptly followed up on all cases, including contacting the parties concerned to obtain details and collecting samples for testing. In addition, the CFS has referred the cases to the health department for follow-up. At present, no food poisoning cases related to the formula have been recorded.
Bacillus cereus is commonly found in the environment. Unhygienic conditions in food processing and storage may give rise to its growth. Cereulide is a heat-stable toxin produced in food by some strains of Bacillus cereus. Consuming food contaminated with excessive Bacillus cereus or its heat-stable toxins may cause gastrointestinal upset such as vomiting and diarrhoea.
The spokesman urged members of the public not to let infants and young children consume the affected batches of the products, and to seek medical treatment for infants or young children who felt unwell after taking the products concerned. The trade should also stop using or selling the affected batches of the products immediately.
"The CFS continues to closely monitor the developments of the situation, follow up and take appropriate action," the spokesman said.
Source: AI-found images
