The Securities and Futures Commission ("SFC") has banned Zhu Hong from regulated activities for 12 months and fined her $400,000 for failures in managing private funds between August 2018 and July 2021. Zhu had been the manager-in-charge of core functions ("MIC") for Kylin International, where she was responsible for approving borrowing agreements and implementing AML/CTF procedures.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On August 18, 2025, the Securities and Futures Commission ("SFC") imposed a 12-month ban on Ms. Zhu Hong from engaging in any regulated activities. This ban is effective from August 16, 2025, to August 15, 2026, and Zhu was also fined $400,000 for her failures in managing private funds. The penalty is a result of her inability to fulfill her duties as Kylin's director and manager-in-charge of core functions ("MIC") for Anti-Money Laundering ("AML") and Counter-Terrorist Financing ("CTF") during her tenure.
Between August 2018 and July 2021, Zhu managed various private funds, approving borrowing agreements and implementing internal control procedures to prevent money laundering and terrorist financing. However, the SFC's investigation revealed that she failed to discharge her duties effectively during this period.
In its decision, the SFC took into account Zhu's acceptance of liability, her otherwise clean disciplinary record, and her remorsefulness. The SFC's disciplinary action against Zhu is linked to its ongoing action against another related entity regarding the management of the same funds, and thus, it will not disclose the full details of its disciplinary action against Zhu until those proceedings conclude.
Kylin International ("HK") Co., Limited (Kylin), was licensed under the Securities and Futures Ordinance ("SFO") for Type 9 (asset management) regulated activity from April 4, 2014, to January 22, 2025. It ceased carrying on regulated activities by the end of 2023. Following the application, the SFC revoked Kylin's license on January 22, 2025.
During her tenure, Zhu held multiple positions at Kylin, including MIC for AML/CTF, Risk Management, and Finance and Accounting from April 30, 2019, to January 22, 2025. Although not a licensed person under the SFO, Zhu falls under the category of a ‘regulated person’ due to her involvement in managing the business of a licensed corporation.
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