Hong Kong's anti-laundering law to take effect
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E-mail Xinhua, March 30, 2012
The Anti-Money Laundering & Counter-Terrorist Financing (Financial Institutions) Ordinance will come into effect on April 1, the Hong Kong Special Administrative Region (HKSAR) government announced on Friday.
According to the Information Services Department of the HKSAR government, the city's Customs & Excise Department will operate a statutory licensing regime for remittance agents and money changers, who are categorized as money service operators under the new ordinance.
At present, there are 2,700 remittance agents and money changers registered with the police. The new ordinance provides for a transitional period from April 1 to May 30, for them to apply for a license under the new regime.
Under the new ordinance, specified financial institutions, including banks, securities firms, insurance companies and intermediaries, and remittance agents and money changers have a statutory obligation to conduct due diligence on their customers and keep the records for a specified period. Non-compliance renders them liable to supervisory and criminal sanctions.
To provide for proper checks and balances, the new ordinance will see the establishment of the independent Anti-Money Laundering & Counter-Terrorist Financing (Financial Institutions) Review Tribunal to review decisions made on the imposition of supervisory sanctions, and decisions on licensing matters made by the Commissioner of Customs & Excise in respect of money service operators.
