Financial Crime World

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HONG KONG TIGHTENS BOLTS ON ANTI-MONEY LAUNDERING AND TERRORISM FINANCING

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In a bid to strengthen its anti-money laundering (AML) and counter-terrorist financing (CTF) regime, Hong Kong has enacted a series of legislation to underpin its robust financial system. The government’s latest move aims to prevent illicit activities such as money laundering and terrorism financing in the city.

Key Legislation

At the heart of Hong Kong’s AML/CTF regime are several key pieces of legislation that impose obligations on various entities to prevent, detect, and report suspicious transactions. These include:

  • Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO): This ordinance requires financial institutions and designated non-financial businesses and professions to conduct customer due diligence and maintain records of their activities.
    • Conduct customer due diligence
    • Maintain records of activities
  • Drug Trafficking (Recovery of Proceeds) Ordinance (DTROPO): This ordinance imposes a universal obligation on suspicious transaction reporting for all persons and entities with knowledge or suspicion that proceeds of drug trafficking are involved in any transactions.
    • Imposes universal obligation on suspicious transaction reporting
  • Organized and Serious Crimes Ordinance (OSCO): This ordinance provides powers to investigate organized crimes and the proceeds of crime, as well as creates offences relating to the handling of those proceeds.
    • Provides powers to investigate organized crimes
    • Creates offenses relating to handling proceeds
  • United Nations (Anti-Terrorism Measures) Ordinance (UNATMO): This ordinance implements UN Security Council Resolution 1373 and imposes a universal obligation on suspicious transaction reporting for all persons and entities with knowledge or suspicion that any property is terrorist property.
    • Implements UN Security Council Resolution 1373
    • Imposes universal obligation on suspicious transaction reporting

Tighter Controls

In addition to these key pieces of legislation, the government has also introduced stricter controls on terrorism financing. The United Nations (Anti-Terrorism Measures) (Amendment) Ordinance 2018 prohibits dealing with specified terrorist property and criminalizes the financing of travel for terrorist acts or provision of terrorist training.

Hong Kong’s AML/CTF regime is designed to prevent illicit activities and maintain the integrity of its financial system.