Updates on Hong Kong’s anti-money laundering laws 2020
| Date | 30 June 2020 |
| Pages | 3-9 |
| Published date | 30 June 2020 |
| DOI | https://doi.org/10.1108/JMLC-05-2020-0048 |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Foster Hong-Cheuk Yim,Ian Philip Lee |
Updates on Hong Kong’s
anti-money laundering laws 2020
Foster Hong-Cheuk Yim
Liberty Chambers, Hong Kong, and
Ian Philip Lee
Faculty of Law, The Chinese University of Hong Kong, Hong Kong
Abstract
Purpose –The purpose of this paper is to discuss the latest developments of anti-money launde ring (AML) laws
intermsofcaselawandtogivemeaningfulresponseinrelationtocertainkeyfindings (KFs) and recommendations
by the financial action task force contained in its mutual evaluation report dated September 2019.
Design/methodology/approach –In terms of AML case law, the authors analyse the latest judgment
from the Hong Kong (HK) courtof final appeal. In terms of the evaluation report, the authors outline salient
points from the KFs and recommendation,commenting on their likelihood of success.
Findings –With the developments in AML case law and the KFs identified,HK is expected to maintain its
high standardin AML/counter financing of terrorism (CFT) compliance.
Originality/value –A robust AML/CFTregime is the bedrock of HK’s reputable status as aninternational
financialcentre. This study seeks to illicit meaningful interactions amongstall stakeholders.
Keywords Hong Kong (HK), Anti-money laundering (AML), Virtual asset service providers (VASPs),
Mutual evaluation, Counter financing of terrorism (CFT), Targeted financialsanctions (TFS),
Suspicious transaction reports (STRs), Letters of no consent (LNCs), Money service operators (MSO)
Paper type Technical paper
1. Introduction
The financial action task force (FATF) is an inter-government body established in 1989 to
set standards and promote effective implementation of measures to combat money
laundering (ML), terrorist financing (TF) and other related threats to the integrity of the
internationalfinancial system (FATF, 2020).
On 4 September 2019, the FATF issued the mutual evaluation report (the “Report”)on
Hong Kong (HK), China (FATF, 2019b), assessing HK’s anti-money laundering (AML) and
counter financing of terrorism(CFT) measures to be compliant and effective overall, making
it the first jurisdiction in the Asia-Pacificregion to have achieved an overall compliant result
in the current round of FATF mutual evaluations(SFC, 2019).
The report confirmed that HK has a strong legal and institutional framework for combating
ML and TF. It noted the significant legislative amendments in 2018 which improved its overall
compliance in the preventive measures for designated non-financial businesses and professions
(DNFBPs), cross-border declaration system, legal regime for TF and targeted financial
sanctions (TFS), as well as transparency of legal persons (FATF, 2019a,p.4).
On the Judiciary side, the HK court of final appeal (CFA) in HKSAR v Harjani (2020) 1
HKC 103, amongst other things, clarifiesa question of law of great and general importance –
“whether wilful blindness is a sufficient basis for sustainingliability under Section 25(1) of
the Organized and Serious CrimesOrdinance, Cap. 455 (i.e. the ML law in HK) (the “Certified
Point of Law Question”).
Anti-money
laundering
laws 2020
3
Journalof Money Laundering
Control
Vol.24 No. 1, 2021
pp. 3-9
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-05-2020-0048
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