Example: bachelor of science

HONG KONG - Financial Services and the Treasury Bureau

HONG KONGMONEY LAUNDERINGAND TERRORIST FINANCINGRISK ASSESSMENT REPORTA pril 2018 FOREWORD BY Financial SECRETARYiHONG KONG S ANTI-MONEY LAUNDERING/COUNTER-FINANCING OF TERRORISM POLICYiiiEXECUTIVE SUMMARYv1. INTRODUCTION TO HONG KONG1 Geographical PositionPopulationLanguageGovernment StructureLegal System and the JudiciaryLaw and OrderEconomy2. RISK ASSESSMENT METHODOLOGY5 The World Bank ToolThe ProcessOrganisation of Report3. OVERALL MONEY LAUNDERING/ TERRORIST FINANCING COMBATING ABILITY 9 Anti-Money Laundering/Counter-Financing of Terrorism Legal FrameworkHigh-level Commitment and Institutional FrameworkProsecution and Judicial ProcessExternal and International CooperationNext Steps4.

and direct engagement with regulators, LEAs, government bodies and private sector entities. The aim is to canvas and consolidate collective knowledge to develop a list of specific threats or vulnerabilities that are the causes, sources or drivers of ML/TF risks in the context of Hong Kong.

Tags:

  Regulators

Information

Domain:

Source:

Link to this page:

Please notify us if you found a problem with this document:

Other abuse

Transcription of HONG KONG - Financial Services and the Treasury Bureau

1 HONG KONGMONEY LAUNDERINGAND TERRORIST FINANCINGRISK ASSESSMENT REPORTA pril 2018 FOREWORD BY Financial SECRETARYiHONG KONG S ANTI-MONEY LAUNDERING/COUNTER-FINANCING OF TERRORISM POLICYiiiEXECUTIVE SUMMARYv1. INTRODUCTION TO HONG KONG1 Geographical PositionPopulationLanguageGovernment StructureLegal System and the JudiciaryLaw and OrderEconomy2. RISK ASSESSMENT METHODOLOGY5 The World Bank ToolThe ProcessOrganisation of Report3. OVERALL MONEY LAUNDERING/ TERRORIST FINANCING COMBATING ABILITY 9 Anti-Money Laundering/Counter-Financing of Terrorism Legal FrameworkHigh-level Commitment and Institutional FrameworkProsecution and Judicial ProcessExternal and International CooperationNext Steps4.

2 MONEY LAUNDERING THREAT27 OverviewMajor Predicate OffencesTypologies Analysis and Money Laundering TrendsOverall Money Laundering Threat5. SECTORAL RISK ASSESSMENT - Financial INSTITUTIONS41 OverviewBankingSecuritiesMoney Service OperatorsInsuranceMoney LendersCONTENT6. SECTORAL RISK ASSESSMENT - DESIGNATED NON- Financial BUSINESSES AND PROFESSIONS77 OverviewLawyersAccountantsTrust or Company Service ProvidersEstate AgentsDealers in Precious Metals and StonesNext Steps7. OTHER PAYMENT METHODS89 OverviewStored Value FacilitiesVirtual CurrenciesNext Steps8.

3 LEGAL PERSONS AND ARRANGEMENTS95 Legal Persons and Other EntitiesLegal ArrangementsCompany Formation and Legal RequirementsNext Steps9. TERRORIST FINANCING101 Terrorism ThreatTerrorist Financing ThreatTerrorist Financing VulnerabilityTerrorist Financing RiskNext StepsANNEX A: LIST OF ABBREVIATIONS109 ANNEX B: LIST OF FIGURES/TABLES/BOXES115iLike elsewhere in the world, Hong Kong is not immune from the threats of money laundering ( ML ) and terrorist financing ( TF ). As an international Financial centre with a highly externally-oriented economy, we are alert to the fact that Hong Kong s competitive advantages orderly flows of capital, people, goods and information; well-established legal system; sophisticated market infrastructure; and advanced professional Services could also make it attractive for criminals seeking to hide or move funds.

4 The fact that Financial activities of criminal elements have become more sophisticated in the digital era and the prevalence of terrorist activities elsewhere call for additional vigilance. Hong Kong is committed to combating ML and TF together with the international community. Over the years we have put in place a robust anti-money laundering and counter-financing of terrorism ( AML/CFT ) regime having regard to international standards set by the Financial Action Task Force.

5 To stay ahead of the curve, we put the AML/CFT regime under continuous review to ensure that it can live up to challenges posed by the fast-changing Financial -market and security landscapes. As part of our ongoing efforts to strengthen the regime, we have conducted this risk assessment to examine the ML/TF threats and vulnerabilities facing various sectors, and the city as a whole. It also identifies areas for further work, so that more targeted responses can be formulated.

6 Informed by the risk assessment, over the past year we have taken forward various enhancement measures. These include updating the legal and regulatory framework, reinforcing the adoption of a risk-based approach in preventive and supervisory measures, stepping up efforts to restrain and confiscate crime proceeds, and strengthening international cooperation. The risk assessment will be updated from time to time as we continue our work to enhance the AML/CFT ever, the Government will spare no efforts and devote the necessary resources to ensure that Hong Kong stays as a safe and clean place for living, work and doing MP Chan, GBM, GBS, MH, JP Financial SecretaryFOREWORD BY Financial SECRETARYiiiThe Hong Kong Special Administrative Region ( HKSAR ) Government adopts a multi-agency approach in constructing its AML/CFT regime.

7 A high-level Central Coordinating Committee on AML/CFT ( CCC ), chaired by the Financial Secretary, steers the formulation of policies and implementation of the AML/CFT regime. It comprises members from the relevant Government bureaux and departments, Financial regulators and law enforcement agencies ( LEAs ), which work together to take forward AML/CFT Government is committed to upholding a robust AML/CFT regime that: (a) Fulfills the international AML/CFT standards;(b) Deters and detects illicit fund flows in and out of the territory, through the Financial system or otherwise.

8 (c) Combats ML/TF and restrains and confiscates illicit proceeds effectively;(d) Reduces ML/TF vulnerabilities of both Financial and non- Financial sectors in Hong Kong;(e) Adopts a risk-based approach ( RBA ) in applying compliance obligations to businesses and individuals;(f ) Fosters strong external and international collaboration to disrupt global ML/TF threats; and(g) Promotes the awareness and builds the capacity of private sector stakeholders in combatting ML/TF risks through engagements in AML/CFT line with the above principles, and in response to risks and gaps identified in this assessment, the Government will focus efforts in five major areas to enhance its AML/CFT regime: (a) Enhancing the AML/CFT legal framework to address gaps in legislation in accordance with international standards and an RBA.

9 (b) Strengthening risk-based supervision to ensure targeted regulation of the riskier areas faced by the Financial and non- Financial sectors;(c) Sustaining outreach and capacity-building to promote awareness and understanding of ML/TF risks by various sectors and the wider community on a continuous basis; (d) Monitoring new and emerging risks to respond promptly to evolving patterns of predicate offences or terrorism, and modes of ML/TF; and(e) Strengthening law enforcement efforts and intelligence capability to tackle domestic and international ML/TF, and enhance restraint and confiscation of the proceeds of crime, including through multi-agency KONG S AML/CFT POLICY ivvAs an international Financial centre.

10 Hong Kong attaches great importance to safeguarding the integrity of its Financial systems by implementing international AML/CFT standards to deter and detect inward and outward flows of illicit funds. Hong Kong is an active member of international AML/CFT organisations, having been a member of the Financial Action Task Force ( FATF ) since 1991 and a founding member of the Asia/Pacific Group on Money Laundering ( APG ) since the years, Hong Kong has built up a comprehensive AML/CFT regime comprising a robust legal framework, effective law enforcement, rigorous preventive measures, international cooperation, and public education and publicity.


Related search queries