The Hong Kong Special Administrative Region (HKSAR) government on Thursday launched a three-month public consultation on a proposed framework legislation on anti-money laundering in respect of the financial sectors.
The Financial Services and the Treasury Bureau (FSTB) said the initiative was a direct response to a call from the Financial Action Task Force (FATF) for Hong Kong to provide statutory backing and appropriate sanctions for customer due diligence and record-keeping requirements for financial institutions, and to put in place an anti-money laundering framework for remittance agents and money changers.
The FATF was an inter-government body created in 1989 with the mission of pushing for and setting the international standards on anti-money laundering regime.
"The proposal is intended to address the deficiencies identified by the FATF in Hong Kong's anti-money laundering regime in its evaluation completed in 2008 and will help maintain Hong Kong's status as an international financial center," said the FSTB.
The proposed Hong Kong framework prescribes the customer due diligence and record keeping requirements for financial institutions, including banks and deposit-taking institutions, among others. It also provided for appropriate regulatory powers.
It provided for criminal and supervisory sanctions, with the establishment of an independent statutory appeals tribunal.
A licensing system will also be introduced for remittance agents and money changers for anti-money laundering regulation and administered by customs authorities.
The FSTB said it was aiming at another round of consultation on the detailed proposals towards the end of the year, adding that it was expecting the introduction of the bill into the Legislative Council in the second quarter of 2010.
(Xinhua News Agency July 10, 2009)
