July 10, 2018: HK SFC AML/CTF Circular

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 24 May 2018, 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) (“DPRK Regulation”) Note 1 was published on the website of the Commerce and Economic Development Bureau on 10 July 2018. A relevant press release issued by the United Nations Security Council, reflecting the updates since the previous list was published in the Gazette (G.N. (E.) 26 of 2018), is attached in Attachment 1.

The aforesaid list can be found on the website of the Commerce and Economic Development Bureau (https://www.cedb.gov.hk/citb/doc/en/Policy_Responsibilities/Centre_1.pdf).

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 2.  The Securities and Futures Commission 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

Enclosure

End

SFO/IS/039/2018

Note 1 The United Nations Sanctions (Democratic People’s Republic of Korea) (Amendment) Regulation 2018, published in the Gazette (L.N. 122 of 2018) on 22 June 2018, substituted section 31 of the DPRK Regulation to provide that the Secretary for Commerce and Economic Development may publish on the website of the Commerce and Economic Development Bureau a list of individuals and entities for the purposes of the definitions of “relevant person” and “relevant entity” in section 1 of the DPRK Regulation.
Note 2
 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.

Links:

HK SFC Notice

HK SFC Circular

UN Web Notices (Attachment 1)

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