International standards of anti-money laundering and counter-financing of terrorism are set by the Financial Action Task Force (FATF). As a member of the FATF, Hong Kong implements recommendations promulgated by this inter-government body to combat money laundering and terrorist financing.
In Hong Kong, legislation dealing with money laundering and terrorist financing includes: the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), the Drug Trafficking (Recovery of Proceeds) Ordinance (DTROP), the Organized and Serious Crimes Ordinance (OSCO), the United Nations (Anti-Terrorism Measures) Ordinance (UNATMO), the United Nations Sanctions Ordinance (UNSO) and the Weapons of Mass Destruction (Control of Provision of Services) Ordinance (WMD(CPS)O).
The AMLO, which came into effect on 1 April 2012, imposes on financial institutions requirements regarding customer due diligence and record-keeping whereas the DTROP, OSCO and UNATMO require reporting of suspicious transactions regarding money laundering or terrorist financing.
The UNATMO and regulations under the UNSO implement sanctions imposed by the United Nations Securities Council, whereas the WMD(CPS)O controls the provision of services that are suspected to be related to proliferation of weapons of mass destruction.
The SFC’s Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Licensed Corporations) sets out the anti-money laundering and counter-financing of terrorism statutory and regulatory requirements, and the anti-money laundering and counter-financing of terrorism standards which licensed corporations should meet in order to comply with the statutory requirements under the AMLO. It also provides practical guidance to assist licensed corporations and their senior management in designing and implementing their own anti-money laundering and counter-financing of terrorism policies, procedures and controls so as to meet the AMLO and other relevant legal and regulatory requirements.
To view the legal and regulatory requirements, please click here.
For other publications and information sources regarding anti-money laundering and counter-financing of terrorism, please click here.
Last update: 17 Oct 2019