HK SFC AML/CTF Circular: Mali & DRC Sanctions changes

Circular to Licensed Corporations and Associated Entities 

Anti-Money Laundering / Counter-Financing of Terrorism 

(1)   United Nations Sanctions (Mali) Regulation 2018 

(2)   United Nations Sanctions (Democratic Republic of the Congo) Regulation 2018

(1)  United Nations Sanctions (Mali) Regulation 2018 

The United Nations Sanctions (Mali) Regulation 2018 (“the Mali Regulation”), made under the United Nations Sanctions Ordinance (Cap. 537) (“UNSO”), was published in the Gazette (L.N. 268 of 2018) on 21 December 2018 with immediate effect.

The Mali Regulation implements sanctions against Mali imposed by the United Nations Security Council Resolution 2432.

We would like to draw licensed corporations’ (“LCs”) and associated entities’ (“AEs”) attention to section 2 of the Mali Regulation which provides for prohibition against making available to certain persons or entities funds or other financial assets or economic resources, or dealing with funds or other financial assets or economic resources of such persons or entities, except with a licence.

The Mali Regulation can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20182251/es220182251268.pdf). 

(2)  United Nations Sanctions (Democratic Republic of the Congo) Regulation 2018 

The United Nations Sanctions (Democratic Republic of the Congo) Regulation 2018 (“the DRC Regulation”), made under the UNSO, was published in the Gazette (L.N. 269 of 2018) on 21 December 2018 with immediate effect.

The DRC Regulation implements sanctions against the Democratic Republic of the Congo imposed by the United Nations Security Council Resolution 2424.

We would like to draw LCs’ and AEs’ attention to section 5 of the DRC Regulation which provides for the prohibitions against making available to certain persons or entities funds or other financial assets or economic resources, or dealing with funds or other financial assets or economic resources of such persons or entities, except with a licence.

The DRC Regulation can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20182251/es220182251269.pdf).

A list specifying “relevant persons and entities” was published under section 28 of the DRC Regulation on the website of the Commerce and Economic Development Bureau on 21 December 2018.

The aforesaid list obtained from the website of the Commerce and Economic Development Bureau is attached in Attachment 1. 

LCs and AEs are reminded to refer to Chapter 6 of the Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Licensed Corporations) (“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/072/2018

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

Updated DRC sanctions list (Attachment 1)

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