The Hong Kong Monetary Authority (HKMA) has launched an investigation into several financial firms and banks for possible breaches of Hong Kong's anti-money-laundering regulations.

This is the first time that a probe has been initiated since the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) was enacted over two years ago, according to South China Morning Post (SCMP).

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The HKMA had confirmed the probe but declined to release any details on the amount of money involved, the names of the companies being investigated, or the laws allegedly breached. Investigations are only conducted if a routine regulatory audit shows possible breaches.

A spokeswoman told the SCMP that the implementation of AMLO gave the city's regulators a new set of powers for performing disciplinary measures when financial firms fail to meet requirements to "conduct due diligence on clients."

According to Stewart McGlynn, the acting head of HKMA's anti-money-laundering department, said the authority would consider applying "disciplinary and prosecution action" should a breach be found.

Simon Deane, a partner at Hong Kong-based law firm Deacons, said those guilty of the act could pay fines or serve jail time, and bank licenses could be revoked. Deane added that the AMLO grants the authorities in Hong Kong "more teeth" for policing the market.

The HKMA spokeswoman explained that under the AMLO, financial firms are obligated to assess the risks of money laundering linked with a prominent Chinese authority.

The body had already questioned one Hong Kong bank over its money laundering control methods, an anonymous source told the Post.

Hong Kong is among the most active foreign exchange trading and financial centers in the world. The city processed a daily average of 25,000 cross-border financial deals last year.

In the first five months alone of 2014, there were 12,931 suspicious financial transactions that banks had reported to the authorities.