HK Hits AIA With Record Fine for Anti-Laundering Lapses (2)

AIA Group Ltd. was subject to a record fine of HK$23 million ($2.9 million) by the Insurance Authority for anti-money laundering oversight, as the city’s regulators steps up scrutiny of the industry.

An on-site inspection by the regulator found “technical issues” with AIA’s anti-money laundering system and associated algorithm, the Insurance Authority said in an e-mailed statement on Friday. The inspection was related to business between the period of March 2016 to October 2022, it said.

The lapses resulted in some customers who were “politically exposed persons” failing to be picked up during the screening process. That led to delays ...