Hong_Kong Hong Kong

New Documents

HKMA, Hong Kong Association of Banks Launch Anti-Scam Charter 2.0

The Hong Kong Monetary Authority and the Hong Kong Association of Banks launched the Anti-Scam Consumer Protection Charter 2.0 to combat credit card scams and digital frauds.

April 15, 2024

HK Regulators Host International Conference on CBDCs

Regulators in Hong Kong organized an international conference on central bank digital currencies and payment systems.

April 11, 2024

Hong Kong Customs Summarizes Key Achievements at Year-End Conference

April 3, 2024

Hong Kong SFC Warns Public of Suspected Virtual Asset-Related Fraud by EDY

April 3, 2024

Hong Kong SFC Warns of HKCEXP Fraud

April 3, 2024

News

Midweek Roundup: Gold Laundering Fuels Sudanese War, UK Regulator Pitches Name-and-Shame Plan, and More

EU tackles money laundering network, SBF wants leniency, and more, in the midweek roundup.

February 28, 2024

Weekly Roundup: New York Yanks BitLicense, Tornado Cash Still in Business, and More

Colombian president’s son charged with money laundering, FinCEN issues PPP guidance, and more, in the weekly roundup.

January 12, 2024

Weekly Roundup: Former FBI Spy Hunter Sentenced, ‘Pig Butchering’ Scheme Dismantled, and More

December 15, 2023

Weekly Roundup: US Treasury Warns VASPs, EU PEP List Gets Mixed Reviews, and More

December 1, 2023

Midweek Roundup: Scottish LPs Enabling Sanctions Evasion, Cyprus Confidential Fallout Begins, and More

November 15, 2023

Enforcement Actions

Hong Kong SFC Suspends Former Responsible Officer of City International Futures

The Hong Kong Securities and Futures Commission suspended Andy Wong Yeung, the former director and responsible officer in charge of overall management oversight of City International Futures (Hong Kong) Limited, until Nov. 8, 2024.

January 10, 2024

HKMA Fines TNG (Asia) Limited HK$1,575,000 for AML/CTF Noncompliance

The Hong Kong Monetary Authority disciplined the North Point, Hong Kong-based chapter of the foreign exchange company under the Payment Systems and Stored Value Facilities Ordinance.

December 21, 2023

HKMA Fines Branch of CA Indosuez (Switzerland) SA HK$3.5 Million for AML/CTF Breaches

November 30, 2023

Hong Kong SFC Fines Lion Futures, Ltd. HK$2.8 Million for AML/CTF Breaches

November 27, 2023

Hong Kong SFC Fines Chee Tak Securities Ltd. HK$2 Million for AML/CTF Shortcomings

November 6, 2023

Key Documents

Hong Kong Enacts AML/CTF Ordinance

July 8, 2011

Hong Kong Publishes Anti-Terrorism Measures Ordinance

February 8, 2012

Hong Kong Monetary Authority Updates AML/CTF Guidelines

January 27, 2012

Hong Kong Insurance Regulator Issues AML/CTF Guidance

January 27, 2012

Hong Kong Publishes AML/CTF Guidance for Money Service Operators

January 27, 2012

Hong Kong Regulator Issues Amended AML/CTF Guideline

March 20, 2015

Important Facts

  • The U.S. State Department labels Hong Kong as a major money laundering jurisdiction. Hong Kong, a Special Administrative Region of the People’s Republic of China, is a major international financial and trading center. Hong Kong is the world’s sixth largest banking center in terms of external transactions and the fourth largest foreign exchange trading center. Hong Kong does not differentiate between offshore and onshore entities for licensing and supervisory purposes, and it has its own U.S. dollar interbank clearing system for settling transactions. The country’s low tax rates and simplified tax regime, together with its sophisticated banking system, shell company formation agents, free port status and the absence of currency and exchange controls present vulnerabilities for money laundering, including trade-based money laundering and underground finance. Hong Kong-based shell companies have been exploited by a variety of suspicious actors to launder money, facilitate illicit trade and gain access to the international financial system. The primary sources of laundered funds – derived from local and overseas criminal activity – are fraud and financial crimes, illegal gambling, loan sharking, and smuggling. Hong Kong requires financial institutions and designated non-financial businesses and professions to comply with customer due diligence procedures and record-keeping requirements. In September 2020, the Hong Kong Monetary Authority updated guidance to require that banks treat suspected breaches of the newly implemented national security law in the same way as AML/CTF violations, and submit related suspicious transaction reports (STRs). The jurisdiction also requires all companies incorporated in Hong Kong to maintain beneficial ownership information. In 2019, the financial intelligence unit received a total of 51,588 STRs and there were 103 money laundering convictions.
-Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 11 High : 0
Largely Compliant : 25 Substantial : 6
Partially Compliant : 4 Moderate : 5
Non-Compliant : 0 Low : 0

Hong Kong's technical compliance was re-rated in a Feb 16, 2023 follow-up report.

BASEL i

Rank : 54/110
Score : 5.2/10

TRANSPARENCY INTERNATIONAL i

Rank : 11/179
Score : 77/100

Tax Justice Network i

Rank : 4/133
Score : 66/100