Due to violations of regulatory requirements and internal control deficiencies, the Hong Kong Securities and Futures Commission condemned and fined Swiss Falcon Private Bank 10.85 million Hong Kong dollars.

On December 11, the Securities and Futures Commission (SFC) in Hong Kong condemned Swiss Falcon Private Bank Limited and imposed a fine of HK$10.85 million on the company for deficiencies in product due diligence, record keeping, and delayed reporting during the period from January 2015 to December 2020. The SFC's investigation was initiated based on the voluntary disclosure by Swiss Falcon Private Bank and investigation results forwarded by the Hong Kong Monetary Authority. In terms of product due diligence, Swiss Falcon Private Bank failed to consider the specific characteristics of different products when evaluating 322 bonds and did not promptly update its internal policies to reflect regulatory changes. The bank also did not ensure that sufficient information and warning statements were provided to customers regarding the distribution of certain complex products before or at the time of each transaction. Regarding record keeping and delayed reporting, Swiss Falcon Private Bank did not maintain due diligence records for 141 bonds and did not report to the SFC immediately when suspicions of deficiencies in product due diligence first arose in July 2020.