I.        Date of sanction: December 19, 2023
II.        Object of sanction: Grand Fortune Securities Co., Ltd. (hereinafter referred to as Grand Fortune Securities).
III.     Legal basis for the sanction: Subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act; paragraph 2, Article 2 of the Regulations Governing Securities Firms; Article 15 of the Regulations Governing Anti-Money Laundering of Financial Institutions; and paragraphs 3 and 4, Article 6, paragraphs 1 and 5, Article 7, and paragraph 5, Article 10 of the Money Laundering Control Act.
IV.    Facts of violation: The brokerage department of Grand Fortune Securities did not establish confirmation measures for elderly customers who suddenly engaged in frequent trading, frequently remitted funds inward and outward for stock trading, or suddenly traded electronically after no trading for more than a year; its risk management personnel concurrently handled board meeting related affairs; the dedicated money laundering control supervisor did not proceed with the reporting of transactions suspected of money laundering or terrorism financing until after obtaining the approval of the president; in the annual review of high-risk customers, it did not update the Certificate of Incumbency of the directors of foreign investment institutions; for the risk assessment of customer occupations, it did not refer to the 2021 edition of the National Risk Assessment Report on Money Laundering, Terrorism Financing and Terrorism Military Expansion released on December 29, 2021 to study the inclusion of newly added vulnerable occupations or industries that are easily exploited for terrorism financing and terrorism military expansion into the “Customer Risk Weighting Table,” in order to strengthen the review or identify the occupations for additional weighting. These indicate that the firm did not implement its internal control system, and are verified to have violated the provisions in paragraph 2, Article 2 of the Regulations Governing Securities Firms; Article 15 of the Regulations Governing Anti-Money Laundering of Financial Institutions; paragraph 1, Article 7 of the Money Laundering Control Act; and the Commission’s letter referenced Jin-Guan-Zheng-Chuan-Zi No. 1070321242 dated July 4, 2018 which was promulgated in accordance with paragraph 3, Article 6 of the Money Laundering Control Act.
V.    Sanction imposed: A fine of NT$600,000 is imposed on Grand Fortune Securities in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act for its shortcomings in the internal control system; in addition, a fine of NT$500,000 is imposed in accordance with paragraph 4, Article 6, paragraph 5, Article 7, and paragraph 5, Article 10 of the Money Laundering Control Act.
    
Contact unit: Section Chief Lo, Securities Firm Management Group, Securities and Futures Bureau
Tel: (02) 2774-7286
If you have any questions, please write to mail