June 8. 2018: HK SFC AML/CTF Circular

Circular to Licensed Corporations and Associated Entities 

Anti-Money Laundering / Counter-Terrorist Financing 

(1)  United Nations Sanctions (Central African Republic) Regulation 2018 

(2)  United Nations Sanctions (Yemen) Regulation 2015 (Amendment) Regulation 2018 

(1)  United Nations Sanctions (Central African Republic) Regulation 2018 

The United Nations Sanctions (Central African Republic) Regulation 2018 (“the CAR Regulation”), made under the United Nations Sanctions Ordinance (Cap. 537) (“UNSO”), was published in the Gazette (L.N. 117 of 2018) on 8 June 2018 with immediate effect.

The CAR Regulation implements sanctions against the Central African Republic as renewed by the United Nations Security Council (“UNSC”) under Resolution 2399.

We would like to draw licensed corporations’ (“LCs”) and associated entities’ (“AEs”) attention to section 5 of the CAR Regulation which provides for prohibition against making available funds or other financial assets or economic resources to relevant persons or entities, or dealing with funds or other financial assets or economic resources of relevant persons or entities, except with a licence.

The CAR Regulation can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20182223/es220182223117.pdf). 

(2)  United Nations Sanctions (Yemen) Regulation 2015 (Amendment) Regulation 2018 

The United Nations Sanctions (Yemen) Regulation 2015 (Amendment) Regulation 2018 (“the Yemen Amendment Regulation”), made under the UNSO, was published in the Gazette (L.N. 118 of 2018) on 8 June 2018 with immediate effect.

The Yemen Amendment Regulation implements sanctions against Yemen as renewed by the UNSC under Resolution 2402.

We would like to draw LCs’ and AEs’ attention to section 7 of the Yemen Amendment Regulation which adds the new section 5C to the United Nations Sanctions (Yemen) Regulation 2015 to provide for prohibition against making available funds or other financial assets or economic resources to relevant persons or entities, or dealing with funds or other financial assets or economic resources of relevant persons or entities, except with a licence.

The Yemen Amendment Regulation can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20182223/es220182223118.pdf).

Furthermore, LCs and 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 UNSO Note 1.

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

End

SFO/IS/032/2018

Note 1 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.

Link:

HK SFC Circular

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