February 23, 2018: HK SFC AML/CTF Circular on UN DPRK sanctions changes

Circular to Licensed Corporations and Associated Entities 

Anti-Money Laundering / Counter-Terrorist Financing 

United Nations Sanctions (Democratic People’s Republic of Korea) Regulation 

Further to our circular issued on 20 February 2018 Note 1 regarding the amendment by the United Nations Security Council committee which administers the sanctions regime relating to the Democratic People’s Republic of Korea of its sanctions list, an updated list specifying “relevant persons and entities” under section 31 of the United Nations Sanctions (Democratic People’s Republic of Korea) Regulation (Cap. 537AE) was published in the Gazette on 23 February 2018 (G.N. 1233 of 2018) Note 2 to reflect the amended sanctions list mentioned above.

Licensed corporations (“LCs”) and associated entities (“AEs”) are reminded to refer to Chapter 6 of the Guideline on Anti-Money Laundering and Counter-Terrorist Financing (“AML Guideline”) which contains guidance on the appropriate measures that LCs and AEs should take to ensure compliance with the regulations made under the United Nations Sanctions Ordinance (Cap.537) Note 3.  The Securities and Futures Commission (“SFC”) expects all new designations to be screened by LCs and AEs against their client lists as soon as practicable whenever there are updates.  LCs and AEs are also 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 on 2231 1569.

Intermediaries Supervision Department
Intermediaries Division
Securities and Futures Commission



Note 1 The circular issued on 20 February 2018 re: early alert on United Nations Sanctions can be found on the SFC’s website (http://www.sfc.hk/edistributionWeb/gateway/EN/circular/doc?refNo=18EC12).
Note 2
 The gazette notice can be found on the Government’s website(https://www.gld.gov.hk/egazette/pdf/20182208/egn201822081233.pdf).
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.


HK SFC Notice

HK SFC Circular

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