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Hong Kong Residents Warned of Money Laundering and Terrorist Financing Risks: What You Need to Know
In a bid to curb financial crimes, authorities in Hong Kong are cracking down on money laundering and terrorist financing activities. According to experts, these offenses are often linked to various illegal activities such as drug trafficking, smuggling, fraud, and corruption.
Money Laundering Offense
The money laundering offense involves dealing with property known or suspected of representing criminal proceeds, or knowingly using property that was or will be used in connection with a criminal offense. In Hong Kong, criminal proceeds can stem from a range of illegal activities, including:
- Drug trafficking
- Extortion
- Loan sharking
- Tax evasion
- Fraud
Law Firms at Risk
Law firms in particular are at risk of money laundering when accepting instructions related to the purchase and sale of property. As such, legal practitioners must be aware of the risks involved and take measures to:
- Identify risky clients or transactions
- Assess the potential risks associated with each case
- Manage these risks through proper due diligence and reporting
Terrorist Financing Risks
Terrorist financing is another area of concern, where individuals provide or collect funds with the intention of using them to commit terrorist acts. Funds may come from both legal and illicit sources.
To stay informed about designated terrorists or terrorist associates, legal practitioners are advised to:
- Check the lists of designated individuals and entities under the United Nations Anti-Terrorism Measures Ordinance and the United Nations Sanctions Ordinance
- Visit official government websites for the latest updates
Reporting Suspicious Activities
In light of these risks, legal practitioners in Hong Kong are advised to exercise extreme caution when accepting instructions related to financial transactions. If you suspect any suspicious activities, report them to the Joint Financial Intelligence Unit (JFIU) immediately.
By taking proactive measures to prevent money laundering and terrorist financing, authorities can help safeguard the integrity of Hong Kong’s financial system.