On July 03, 2025, the Securities and Futures Commission ("SFC") fined Freeman Commodities Limited (now Arta Global Futures Limited) $3.4 million and suspended former responsible officer Mr. Li Chun Kei for 4 months due to regulatory breaches.
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On July 3, 2025, the Securities and Futures Commission ("SFC") imposed disciplinary sanctions on Freeman Commodities Limited, subsequently known as Arta Global Futures Limited. The SFC fined Freeman $3.4 million and suspended former responsible officer Mr. Li Chun Kei for four months. These measures were the result of significant regulatory breaches.
### Regulatory Breaches and Findings
The SFC found that Freeman failed to conduct adequate due diligence on customer-supplied systems ("CSSs") used by 89 clients for order placement during a specified period. This failure resulted in inadequate assessment and management of money laundering and terrorist financing ("ML/TF") risks. Furthermore, Freeman did not effectively monitor client accounts, leading to incommensurate deposits and suspicious trading patterns. The SFC's investigation also uncovered that Freeman maintained an ineffective monitoring system for detecting suspicious trading patterns, allowing for frequent and large trades, as well as simultaneous buy and sell orders at the same price for the same futures contracts by the same clients. The SFC concluded that Freeman's systems and controls were inadequate and ineffective, failing to comply with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, the AML Guideline, and the Code of Conduct.
### Disciplinary Sanctions
In determining the sanctions against Freeman and Mr. Li, the SFC considered the gravity of the failures in diligently monitoring client activities and implementing effective AML/CFT systems and controls. The SFC also emphasized the importance of sending a strong deterrent message, Freeman’s and Mr. Li’s clean disciplinary records, and Arta’s financial position and cessation of business operations. The financial penalties and suspension aim to ensure regulatory compliance and deter similar misconduct in the future.
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