March 29, 2019: HK SFC AML/CFT Circular

Circular to Licensed Corporations and Associated Entities 
Anti-Money Laundering / Counter-Financing of Terrorism
(1) United Nations Sanctions (Libya) Regulation 2019 and United Nations Sanctions (Libya) Regulation 2011 (Repeal) Regulation 
(2) United Nations Sanctions (Somalia) Regulation 2019 and United Nations Sanctions (Somalia) Regulation (Repeal) Regulation 
(3) United Nations Sanctions (Eritrea) Regulation (Repeal) Regulation

29 Mar 2019

(1)  United Nations Sanctions (Libya) Regulation 2019 and United Nations Sanctions (Libya) Regulation 2011 (Repeal) Regulation

The United Nations Sanctions (Libya) Regulation 2019 (“the Libya Regulation 2019”) and the United Nations Sanctions (Libya) Regulation 2011 (Repeal) Regulation (“the Libya Repeal Regulation”), made under the United Nations Sanctions Ordinance (Cap. 537) (“UNSO”), were published in the Gazette (L.N. 53 & 54 of 2019) on 29 March 2019 with immediate effect.

The Libya Regulation 2019 implements all sanctions and exemptions imposed by the United Nations Security Council (“UNSC”) on Libya, including those extended by UNSC Resolution 2441, using modernised provisions to improve tidiness and readability of the legislation. Consequential to the making of the Libya Regulation 2019, the Libya Repeal Regulation repeals the United Nations Sanctions (Libya) Regulation 2011 Note 1.

We would like to draw licensed corporations’ (“LCs”) and associated entities’ (“AEs”) attention to section 9 of the Libya Regulation 2019 which provides for prohibition against making available economic assets to certain persons or entities, or dealing with economic assets of such persons or entities, except with a licence.

The Libya Regulation 2019 and the Libya Repeal Regulation can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20192313/es22019231353.pdf & https://www.gld.gov.hk/egazette/pdf/20192313/es22019231354.pdf) respectively.

A list specifying “relevant persons and entities” was published under section 43 of the Libya Regulation 2019 on the website of the Commerce and Economic Development Bureau on 29 March 2019.

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

(2)  United Nations Sanctions (Somalia) Regulation 2019 and United Nations Sanctions (Somalia) Regulation (Repeal) Regulation

The United Nations Sanctions (Somalia) Regulation 2019 (“the Somalia Regulation 2019”) and the United Nations Sanctions (Somalia) Regulation (Repeal) Regulation (“the Somalia Repeal Regulation”) made under the UNSO was published in the Gazette (L.N. 55 & 56 of 2019) on 29 March 2019 with immediate effect.

The Somalia Regulation 2019 implements all sanctions and exemptions imposed by the UNSC on Somalia, including those extended by UNSC Resolution 2444, using modernised provisions to improve tidiness and readability of the legislation. Consequential to the making of the Somalia Regulation 2019, the Somalia Repeal Regulation repeals the United Nations Sanctions (Somalia) Regulation Note 2.

We would like to draw LCs’ and AEs’ attention to section 6 of the Somalia Regulation 2019 which provides for prohibition against making available economic assets to certain persons or entities, or dealing with economic assets of such persons or entities, except with a licence.

The Somalia Regulation 2019 and the Somalia Repeal Regulation can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20192313/es22019231355.pdf & https://www.gld.gov.hk/egazette/pdf/20192313/es22019231356.pdf) respectively.

A list specifying “relevant persons and entities” was published under section 29 of the Somalia Regulation 2019 on the website of the Commerce and Economic Development Bureau on 29 March 2019.

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

(3)  United Nations Sanctions (Eritrea) Regulation (Repeal) Regulation

The United Nations Sanctions (Eritrea) Regulation (Repeal) Regulation (“the Eritrea Repeal Regulation”) made under the UNSO was published in the Gazette (L.N. 57 of 2019) on 29 March 2019 with immediate effect.

The Eritrea Repeal Regulation repeals the United Nations Sanctions (Eritrea) Regulation Note 3 to implement the UNSC’s decision to lift the sanctions previously imposed on Eritrea.

The Eritrea Repeal Regulation can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20192313/es22019231357.pdf).

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 4. 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 at 2231 1569 who will assist to refer your queries to the relevant officer.

Intermediaries Supervision Department
Intermediaries Division
Securities and Futures Commission

Enclosure

End

SFO/IS/014/2019

Note 1 Please refer to our circular issued on 29 September 2017 for information on the United Nations Sanctions (Libya) Regulation 2011 (https://www.sfc.hk/edistributionWeb/gateway/EN/circular/aml/aml-sanction-related/doc?refNo=17EC65).

Note 2 Please refer to our circular issued on 20 April 2018 for information on the United Nations Sanctions (Somalia) Regulation (https://www.sfc.hk/edistributionWeb/gateway/EN/circular/aml/aml-sanction-related/doc?refNo=18EC27).

Note 3 Please refer to our circular issued on 22 October 2010 for information on the United Nations Sanctions (Eritrea) Regulation (https://www.sfc.hk/edistributionWeb/gateway/EN/circular/aml/aml-sanction-related/openFile?refNo=H605).

Note 4 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

Commerce and Economic Development Bureau List (Libya) – Attachment 1

Commerce and Economic Development Bureau List (Somalia) – Attachment 2

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