Circular to Licensed Corporations and Associated Entities - Anti-Money Laundering / Counter-Financing of Terrorism
United Nations Sanctions (Yemen) Regulation 2019 and United Nations Sanctions (Yemen) Regulation 2015 (Repeal) Regulation

12 Jul 2019



Circular to Licensed Corporations and Associated Entities

Anti-Money Laundering / Counter-Financing of Terrorism

United Nations Sanctions (Yemen) Regulation 2019 and United Nations Sanctions (Yemen) Regulation 2015 (Repeal) Regulation

The United Nations Sanctions (Yemen) Regulation 2019 ("the Yemen Regulation 2019") and the United Nations Sanctions (Yemen) Regulation 2015 (Repeal) Regulation ("the Yemen Repeal Regulation"), made under the United Nations Sanctions Ordinance (Cap. 537) ("UNSO"), were published in the Gazette (L.N. 94 & 95 of 2019) on 12 July 2019 with immediate effect.

The Yemen Regulation 2019 implements all sanctions and exemptions imposed by the United Nations Security Council ("UNSC") on Yemen, including those extended by UNSC Resolution 2456, using modernised drafting styles to improve tidiness and readability of the legislation. Consequential to the making of the Yemen Regulation 2019, the Yemen Repeal Regulation repeals the United Nations Sanctions (Yemen) Regulation 2015 Note 1.

We would like to draw licensed corporations’ ("LCs") and associated entities’ ("AEs") attention to section 5 of the Yemen Regulation 2019 which provides for prohibition against making available economic assets to a relevant person or a relevant entity, or dealing with economic assets of such person or entity, except with a licence.

The Yemen Regulation 2019 and the Yemen Repeal Regulation can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20192328/es22019232894.pdf & https://www.gld.gov.hk/egazette/pdf/20192328/es22019232895.pdf) respectively.

A list specifying "relevant persons and entities" was published under section 31 of the Yemen Regulation 2019 on the website of the Commerce and Economic Development Bureau on 12 July 2019.  This list is identical to the list of "relevant persons" designated for the purpose of financial sanctions under section 30A of the United Nations Sanctions (Yemen) Regulation 2015 published in the Gazette on 30 September 2016 (G.N. 5463 of 2016) Note 2.

The aforesaid list obtained from the website of the Commerce and Economic Development Bureau is attached in Attachment 1.

LCs and AEs are reminded to refer to Chapter 6 of the Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Licensed Corporations) ("AML Guideline") which contains guidance on the appropriate measures that LCs and AEs should take to ensure compliance with the regulations made under the UNSO Note 3.  LCs and AEs are reminded to report any transactions or relationships they have or have had with any designated person or entity to the Joint Financial Intelligence Unit.

Should you have any queries regarding the contents of this circular, please contact Ms Kiki Wong at 2231 1569 who will assist to refer your queries to the relevant officer.

Intermediaries Supervision Department
Intermediaries Division
Securities and Futures Commission

Enclosure

End

SFO/IS/039/2019

Note 1 Our circular issued on 8 June 2018 on the United Nations Sanctions (Yemen) Regulation 2015 (Amendment) Regulation 2018 also provided further background information. (https://www.sfc.hk/edistributionWeb/gateway/EN/circular/aml/doc?refNo=18EC41).
Note 2
Please refer to our circular issued on 30 September 2016 (https://www.sfc.hk/edistributionWeb/gateway/EN/circular/aml/doc?refNo=16EC44)
Note 3
Under paragraph 6 of the Prevention of Money Laundering and Terrorist Financing Guideline issued by the Securities and Futures Commission for Associated Entities, AEs that are not authorized financial institutions are expected to have regard to the provisions of the AML Guideline as if they were themselves LCs.


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Supplementary document:
Attachment 1


Page last updated : 12 Jul 2019