Hong Kong

New Documents

HKMA Chief Executive Outlines 2025 FinTech Strategy

Eddie Yue, the Hong Kong Monetary Authority Chief Executive, delivered the opening remarks at Hong Kong Association of Bank’s financial technology seminar, outlining the next phase of Hong Kong’s FinTech strategy.

June 9, 2021

HKMA to Host RegTech Virtual Event

The Hong Kong Monetary Authority announced that it will host a regulatory technology event, Unlocking the Power of RegTech, on June 30, 2021.

June 3, 2021

Hong Kong SFC Adopts Amended Yemen Sanctions Regulation

June 2, 2021

HKMA Calls on Licensed Institutions to Use FinTech Tool for Remote Customer Onboarding

May 27, 2021

HKMA Announces Next Phase of Open API Framework Implementation

May 19, 2021

News

Weekly Roundup: BNP Allegedly Laundered Gabonese Funds, German Report Blames EY’s Lax Scrutiny of Wirecard, and More

Goldman Sachs invests in AML regtech, Crown Resorts executives disregarded AML concerns, and more, in the weekly roundup.

May 21, 2021

Midweek Roundup: Global Banks Handled Billions for Iran, Wirecard Ignored Compliance Chief, and More

Maltese FIU to shift from AML fines to remediation, Swedish gaming company challenges $175 million penalty, and more, in the midweek roundup.

April 28, 2021

European, UK AML Enforcement Remained Strong in 2020

April 19, 2021

Midweek Roundup: JPMorgan AML Officer Helped Hide Corrupt Payments, ABN Amro Under Investigation, and More

March 17, 2021

Weekly Roundup: US Officials Block Myanmar Payment, Lebanese Central Bank Chief Draws US Treasury Focus, and More

March 5, 2021

Enforcement Actions

Hong Kong SFC Issues $5 Million Fine to Yardley Securities Limited for AML/CTF Violations

The Hong Kong Securities and Futures Commission issued a disciplinary action and fine of $5 million against the Hong Kong-based securities firm, for its breach of anti-money laundering and counterterrorist financing regulations.

March 23, 2021

Hong Kong SFC Orders Sino-Rich Securities and Futures Limited to Pay $7.2 Million for AML/CTF Failures

The Hong Kong Securities and Futures Commission issued a disciplinary action against the Hong Kong-based securities firm, ordering it to pay $7.2 million for anti-money laundering and counterterrorist financing regulatory breaches.

March 16, 2021

Hong Kong SFC Orders Goldman Sachs (Asia) L.L.C. to Pay $350 Million Fine for AML Deficiencies Linked to 1MDB Scandal

October 22, 2020

Hong Kong SFC Bans Former Director of Guosen Securities (HK) Brokerage Company, Limited for AML/CTF Failures

June 26, 2020

Hong Kong’s SFC Fines Guotai Junan Securities Over HK$25 Million for AML Deficiencies

June 22, 2020

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. Groups involved in money laundering range from local street organizations to sophisticated international syndicates, including Asian triads involved in various criminal activities. 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, such as North Korea and Iran, 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, smuggling and vice. Hong Kong requires financial institutions and designated non-financial businesses and professions to comply with customer due diligence procedures and record-keeping requirements. Hong Kong implemented a system in 2018 for the declaration and disclosure of physical cross-border transportation of currency and bearer negotiable instruments. The jurisdiction also requires all companies incorporated in Hong Kong to maintain beneficial ownership information. From Jan. 1 through Sept. 30, 2019, the financial intelligence unit received a total of 37,816 suspicious transaction reports and there were 83 money laundering convictions in Hong Kong.
-Source: 2020 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

BASEL i

Rank : 80/141
Score : 4.99/10

TRANSPARENCY INTERNATIONAL i

Rank : 16/180
Score : 76/100

Tax Justice Network i

Rank : 4/133
Score : 66/100