September 21, 2018: HK SFC AML/CTF Circular

Circular to Licensed Corporations and Associated Entities 

Anti-Money Laundering / Counter-Terrorist Financing 

(1)   United Nations Sanctions (Libya) Regulation 2011 

(2)   United Nations Sanctions (ISIL and Al-Qaida) Regulation 

(1)  United Nations Sanctions (Libya) Regulation 2011 

Further to our circular issued on 14 September 2018, an updated list specifying “relevant persons and entities” under section 38 of the United Nations Sanctions (Libya) Regulation 2011 (Cap. 537AW) was published in the Gazette on 21 September 2018 (G.N. 7033 of 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. 6889 of 2018), is attached in Attachment 1.

The aforesaid list can be found on the Government’s website(https://www.gld.gov.hk/egazette/pdf/20182238/egn201822387033.pdf). 

(2)  United Nations Sanctions (ISIL and Al-Qaida) Regulation 

The United Nations Sanctions (ISIL and Al-Qaida) Regulation (“the Regulation”), made under the United Nations Sanctions Ordinance (Cap. 537) (“UNSO”), was published in the Gazette (L.N. 157 of 2018) on 21 September 2018 with immediate effect.

The Regulation implements sanctions against the Islamic State in Iraq and the Levant (ISIL), Al-Qaida and associated individuals, groups, undertakings and entities imposed by the United Nations Security Council under Resolution 2368.

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

The Regulation can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20182238/es220182238157.pdf).

A list specifying “individuals, groups, undertakings and entities” was published under section 25 of the Regulation on the website of the Commerce and Economic Development Bureau on 21 September 2018.

The aforesaid list obtained from the website of the Commerce and Economic Development Bureau is attached in Attachment 2. 

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.  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/054/2018

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.

Links:

HK SFC Notice

HK SFC Circular

UN Web Notices – Libya (Attachment 1), ISIL and Al-Qaida (Attachment 2)

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