Circular to Licensed Corporations and Associated Entities
Anti-Money Laundering / Counter-Terrorist Financing
Publication of Hong Kong’s Money Laundering and Terrorist Financing Risk Assessment Report
The Government published today Hong Kong’s Money Laundering and Terrorist Financing (“ML/TF”) Risk Assessment Report (“the Report”). Having regard to the recommendation of the Financial Action Task Force for jurisdictions to identify and assess their ML/TF risks and to apply corresponding mitigating measures, the Report examines the ML/TF threats and vulnerabilities faced by various sectors in Hong Kong and the city as a whole.
The Report can be found on the Government’s website (https://www.fstb.gov.hk/fsb/aml/en/risk-assessment.htm).
Licensed corporations (“LCs”) and associated entities (“AEs”) are required to identify and assess ML/TF risks to which the firms are exposed, so as to determine the adequate and appropriate anti-money laundering and counter-financing of terrorism (“AML/CFT”) policies, procedures and controls (“AML/CFT systems”) that should be implemented to mitigate the risks of ML/TF identified Note 1.
LCs and AEs should give due consideration to the ML/TF threats and vulnerabilities identified in the Report, in particular its Chapter 5.3 on the assessment of ML risks of securities sector, that are relevant to their own circumstances Note 2 in their risk assessment process. LCs and AEs should review as appropriate their customer risk assessment schemes and suspicious transaction monitoring systems, or take other measures to ensure that they properly manage and mitigate the risks which are applicable to them. Some related guidance is set out in the Appendix to this circular.
Should you have any queries regarding the contents of this circular, please contact Ms Kiki Wong on 2231 1569.
Intermediaries Supervision Department
Securities and Futures Commission
Note 1 Please see Chapter 2 of the Guideline on Anti-Money Laundering and Counter-Terrorist Financing (“AML Guideline”) and our circular issued on 26 January 2017 on Compliance with AML/CFT Requirements.
Note 2 Taking into account all relevant risk factors such as those in respect of products and services offered, delivery and distribution channels, types of customers, countries and geographical locations involved.
HK SFC Notice
HK SFC Circular
Risk Assessment Report