Hong Kong launches consultation on anti-money laundering legislation

The Hong Kong Special Administrative Region (HKSAR) government launched a three-month public consultation on proposed framework legislation on anti-money laundering in respect of the financial sector. The proposed Hong Kong framework prescribes customer due diligence and record keeping requirements for financial institutions, including banks and deposit-taking institutions, among others. According to the statement issued by the Hong Kong's Financial Services and the Treasury Bureau (FSTB), the plans also set out the liability and offense for breaches of those obligations, the powers of the regulatory authorities in supervising compliance, with appropriate checks on the exercise of such powers; criminal and supervisory sanctions for breaches of the obligations; and a proposed licensing system for those engaged in remittances and money-changing services.

FSTB said “The proposal is intended to address the deficiencies identified by the Financial Action Task Force (FATF) in Hong Kong's anti-money laundering regime in its evaluation completed in 2008 and will help maintain Hong Kong's status as an international financial center.”

Source: The Standard and Chinaview.cn