HK Securities and Futures Commission

Circular to Licensed Corporations and Associated Entities

Anti-Money Laundering / Counter-Financing of Terrorism

Early Alert on United Nations Sanctions

The sanctions committee of the United Nations Security Council (“UNSC”) which administers the sanctions regime for ISIL (Da’esh) and Al-Qaida added one entity to and removed one individual from its sanctions list Note 1, 2 on 14 May 2019 (New York time).  Please refer to the relevant press releases issued by the UNSC in Attachment 1.

Licensed corporations (“LCs”) and associated entities (“AEs”) should update their screening databases with the above changes made by the UNSC sanctions committee for sanctions screening of customers and payments.  LCs and AEs are reminded to refer to our circular on United Nations Sanctions issued on 7 February 2018 Note 3 which sets out our expectations on actions that LCs and AEs should take regarding sanctions imposed by the UNSC.

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/025/2019

Note 1 An updated list specifying “individuals, groups, undertakings and entities”, reflecting the amendments by the sanctions committee of the UNSC, was published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB) on the website of the Commerce and Economic Development Bureau on 15 May 2019. The list obtained from the website of the Commerce and Economic Development Bureau is attached in Attachment 2.
Note 2
 Licensed corporations and associated entities will also be alerted when the updated sanctions list, reflecting the amendments by the sanctions committee of the UNSC, is published under the United Nations (Anti-Terrorism Measures) Ordinance (Cap. 575) in the Gazette. The website of the Securities and Futures Commission (“SFC”) will also be updated to provide a weblink to the gazette notice thereof for easy reference.
Note 3
 The circular on United Nations Sanctions can be accessed on the SFC’s website (http://www.sfc.hk/edistributionWeb/gateway/EN/circular/aml/aml-regulations/doc?refNo=18EC9)

Links:

HK SFC Circular

UN Press Releases (Attachment 1)

Commerce and Economic Development Bureau List (Attachment 2)

Circular to Licensed Corporations and Associated Entities

Anti-Money Laundering / Counter-Financing of Terrorism

Updated AML/CFT Self-Assessment Checklist

The Securities and Futures Commission (“SFC”) today posted an updated AML/CFT Self-Assessment Checklist which has incorporated revisions to reflect the latest Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Licensed Corporations)Note 1. A copy of the updated checklist can be downloaded from the SFC’s website at(https://www.sfc.hk/web/EN/files/IS/AML/AML_Self_Assessment_Checklist_EN.docx).

The AML/CFT Self-Assessment Checklist has been prepared to provide a structured framework for licensed corporations (“LCs”) and associated entities (“AEs”) to assess compliance with the key AML/CFT requirements. LCs and AEs are advised to use the self-assessment checklist as part of their regular review to monitor their AML/CFT compliance.

The senior management of LCs and AEs should ensure that any compliance deficiencies identified during the regular reviews are rectified in a timely manner. In the course of our regular inspections, we may require LCs and AEs to provide documentary evidence of the performance of such review and its results.

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

End

SFO/IS/017/2019

Note 1 Please refer to the press release on 12 October 2018 re the consultation conclusions on amendments to anti-money laundering and counter-financing of terrorism guidelines (https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR119).

Links:

HK SFC Notice

HK SFC Circular

Circular to Licensed Corporations and Associated Entities

Anti-Money Laundering / Counter-Financing of Terrorism

(1)  United Nations (Anti-Terrorism Measures) Ordinance

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

(1)  United Nations (Anti-Terrorism Measures) Ordinance 

Further to our circular issued on 18 April 2019, an updated list specifying terrorists and terrorist associates designated by the United Nations Security Council (“UNSC”) was published under section 4 of the United Nations (Anti-Terrorism Measures) Ordinance (“the UNATMO”) (Cap. 575) in the Gazette (G.N. (E.) 23 of 2019) on 23 April 2019.  A relevant press release issued by the UNSC, reflecting the updates since the previous list was published in the Gazette (G.N. (E.) 22 of 2019), is attached in Attachment 1 Note 1.

The aforesaid list can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20192323e/egn2019232323.pdf).

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

Further to our circular issued on 18 April 2019, an updated list specifying “individuals, groups, undertakings and entities” was published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB) on the website of the Commerce and Economic Development Bureau on 23 April 2019. A relevant press release issued by the UNSC, reflecting the updates since the previous list was published on the website of the Commerce and Economic Development Bureau, is attached in Attachment 1 Note 1.

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

Licensed corporations (“LCs”) and associated entities (“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 UNATMO (Cap. 575) and 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 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/020/2019

Note 1 The updates made to the sanctions lists published under the UNATMO and the United Nations Sanctions (ISIL and Al-Qaida) Regulation are identical.
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 Press Releases (Attachment 1)

Commerce and Economic Development Bureau List (Attachment 2)

Circular to Licensed Corporations and Associated Entities

Anti-Money Laundering / Counter-Financing of Terrorism

(1)  United Nations (Anti-Terrorism Measures) Ordinance

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

(1)  United Nations (Anti-Terrorism Measures) Ordinance 

Further to our circular issued on 16 April 2019, an updated list specifying terrorists and terrorist associates designated by the United Nations Security Council (“UNSC”) was published under section 4 of the United Nations (Anti-Terrorism Measures) Ordinance (“the UNATMO”) (Cap. 575) in the Gazette (G.N. (E.) 22 of 2019) on 18 April 2019.  A relevant press release issued by the UNSC, reflecting the updates since the previous list was published in the Gazette (G.N. (E.) 21 of 2019), is attached in Attachment 1 Note 1.

The aforesaid list can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20192322e/egn2019232222.pdf).

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

Further to our circular issued on 16 April 2019, an updated list specifying “individuals, groups, undertakings and entities” was published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB) on the website of the Commerce and Economic Development Bureau on 18 April 2019. A relevant press release issued by the UNSC, reflecting the updates since the previous list was published on the website of the Commerce and Economic Development Bureau, is attached in Attachment 1 Note 1.

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

Licensed corporations (“LCs”) and associated entities (“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 UNATMO (Cap. 575) and 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 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/019/2019

Note 1 The updates made to the sanctions lists published under the UNATMO and the United Nations Sanctions (ISIL and Al-Qaida) Regulation are identical.
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 Press Release (Attachment 1)

Commerce and Economic Development Bureau list (Attachment 2)

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism 
(1) United Nations (Anti-Terrorism Measures) Ordinance
(2) United Nations Sanctions (ISIL and Al-Qaida) Regulation

16 Apr 2019

Circular to Licensed Corporations and Associated Entities

Anti-Money Laundering / Counter-Financing of Terrorism

(1)  United Nations (Anti-Terrorism Measures) Ordinance

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

(1)  United Nations (Anti-Terrorism Measures) Ordinance 

Further to our circular issued on 1 April 2019, an updated list specifying terrorists and terrorist associates designated by the United Nations Security Council (“UNSC”) was published under section 4 of the United Nations (Anti-Terrorism Measures) Ordinance (“the UNATMO”) (Cap. 575) in the Gazette (G.N. (E.) 21 of 2019) on 16 April 2019.  A relevant press release issued by the UNSC, reflecting the updates since the previous list was published in the Gazette (G.N. (E.) 17 of 2019), is attached in Attachment 1 Note 1.

The aforesaid list can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20192321e/egn2019232121.pdf).

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

Further to our circular issued on 1 April 2019, an updated list specifying “individuals, groups, undertakings and entities” was published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB) on the website of the Commerce and Economic Development Bureau on 16 April 2019. A relevant press release issued by the UNSC, reflecting the updates since the previous list was published on the website of the Commerce and Economic Development Bureau, is attached in Attachment 1 Note 1.

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

Licensed corporations (“LCs”) and associated entities (“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 UNATMO (Cap. 575) and 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 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/018/2019

Note 1 The updates made to the sanctions lists published under the UNATMO and the United Nations Sanctions (ISIL and Al-Qaida) Regulation are identical.
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

United Nations Press Releases (Attachment 1)

Commerce and Economic Development Bureau List (Attachment 2)

Circular to Licensed Corporations and Associated Entities

Anti-Money Laundering / Counter-Financing of Terrorism

Early Alert on United Nations Sanctions

The sanctions committee of the United Nations Security Council (“UNSC”) which administers the sanctions regime for ISIL (Da’esh) and Al-Qaida added one individual to and amended the details of 73 individuals and seven entities on its sanctions list Note 1, 2 on 1 May 2019 (New York time).  Please refer to the relevant press releases issued by the UNSC in Attachment 1.

Licensed corporations (“LCs”) and associated entities (“AEs”) should update their screening databases with the above changes made by the UNSC sanctions committee for sanctions screening of customers and payments.  LCs and AEs are reminded to refer to our circular on United Nations Sanctions issued on 7 February 2018 Note 3 which sets out our expectations on actions that LCs and AEs should take regarding sanctions imposed by the UNSC.

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/022/2019

Note 1 An updated list specifying “individuals, groups, undertakings and entities”, reflecting the amendments by the sanctions committee of the UNSC, was published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB) on the website of the Commerce and Economic Development Bureau on 2 May 2019. The list obtained from the website of the Commerce and Economic Development Bureau is attached in Attachment 2.
Note 2
 Licensed corporations and associated entities will also be alerted when the updated sanctions list, reflecting the amendments by the sanctions committee of the UNSC, is published under the United Nations (Anti-Terrorism Measures) Ordinance (Cap. 575) in the Gazette. The website of the Securities and Futures Commission (“SFC”) will also be updated to provide a weblink to the gazette notice thereof for easy reference.
Note 3
 The circular on United Nations Sanctions can be accessed on the SFC’s website (http://www.sfc.hk/edistributionWeb/gateway/EN/circular/aml/aml-regulations/doc?refNo=18EC9)

Links:

HK SFC Notice

HK SFC Circular

UN Web Notices (Attachment 1)

Commerce and Economic Development Bureau List (Attachment 2)

Circular to Licensed Corporations and Associated Entities

Anti-Money Laundering / Counter-Financing of Terrorism

(1)  United Nations (Anti-Terrorism Measures) Ordinance

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

(1)  United Nations (Anti-Terrorism Measures) Ordinance 

Further to our circular issued on 25 March 2019, an updated list specifying terrorists and terrorist associates designated by the United Nations Security Council (“UNSC”) was published under section 4 of the United Nations (Anti-Terrorism Measures) Ordinance (“the UNATMO”) (Cap. 575) in the Gazette (G.N. (E.) 17 of 2019) on 1 April 2019.  A relevant press release issued by the UNSC, reflecting the updates since the previous list was published in the Gazette (G.N. (E.) 13 of 2019), is attached in Attachment 1 Note 1.

The aforesaid list can be found on the Government’s website (https://www.gld.gov.hk/egazette/pdf/20192317e/egn2019231717.pdf).

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

Further to our circular issued on 25 March 2019, an updated list specifying “individuals, groups, undertakings and entities” was published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB) on the website of the Commerce and Economic Development Bureau on 30 March 2019. A relevant press release issued by the UNSC, reflecting the updates since the previous list was published on the website of the Commerce and Economic Development Bureau, is attached in Attachment 1 Note 1.

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

Licensed corporations (“LCs”) and associated entities (“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 UNATMO (Cap. 575) and 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 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/015/2019

Note 1 The updates made to the sanctions lists published under the UNATMO and the United Nations Sanctions (ISIL and Al-Qaida) Regulation are identical.
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 Press Releases (Attachment 1)

Commerce and Economic Development Bureau List (Attachment 2)