Financial Crime World

Here is the rewritten article in markdown format:

Hong Kong Tightens Grip on Know Your Customer (KYC) Procedures

In a bid to prevent money laundering and terrorist financing, the Hong Kong government has strengthened its Know Your Customer (KYC) procedures in recent years. As digital banking services and online trading of equities and exchange-traded funds (ETFs) continue to surge in popularity, financial institutions and other regulated entities are under increasing pressure to comply with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations.

What is KYC in Hong Kong?

KYC is a process of gathering a customer’s personal data and verifying its accuracy. It involves identifying and verifying the client’s identity, as well as assessing their risk profile. In Hong Kong, financial institutions are required to conduct CDD (Customer Due Diligence) on all customers, including individuals and entities.

KYC Requirements in Hong Kong

To comply with KYC regulations in Hong Kong, financial institutions must collect the following identification data from natural persons:

  • Full name
  • Date of birth
  • Nationality
  • Unique Identification Number (e.g. identity card number or passport number) and document type

In addition to identification data, financial institutions must also verify a customer’s address using documents such as utility bills, bank statements, or government-issued documents.

Hong Kong’s AML and CFT Framework

The Hong Kong Monetary Authority (HKMA) has released guidelines on anti-money laundering and combating the financing of terrorism for authorized institutions. The Securities and Futures Commission (SFC) has also issued an updated guideline on AML/CFT for licensed corporations. The Cap. 615 Anti-Money Laundering and Counter-Terrorist Financing Ordinance emphasizes the requirements relating to CDD for financial institutions and designated non-financial businesses/professions.

Hong Kong FinTech 2025 Strategy

In June 2021, the HKMA released a strategy to complete the digitalization of financial institutions by 2025. As part of this strategy, Hong Kong’s government encouraged the country’s financial sector to build new and improved measures to combat money laundering and fraud challenges that will arise upon the complete digitalization.

Lanturn’s KYC & AML Services

At Lanturn, we understand the importance of complying with KYC regulations in Hong Kong. Our team provides comprehensive KYC and AML services to help financial institutions stay compliant with regulations. Our services include:

Basic Checks

  • Verifying the information obtained on the identity of potential/existing clients, shareholders, and investors

Enhanced Checks

  • For funds involving higher-risk customers, where a deeper understanding of the target individual/entity’s activities is needed to mitigate associated risks

If you’re interested in availing of our KYC/AML services in Hong Kong, please get in touch with us today. Our team has years of experience assisting different businesses stay compliant with KYC, AML, and CFT procedures to ensure your business’ safety.