Recently, the FATF and APG have released a mutual report of evaluation highlighting the details of a review of Honk Kong’s AML/CFT practice. It has been reported that the Hong Kong’s AML/CFT regime is assessed to be compliant and effective overall which makes it the first APAC jurisdiction to achieve an overall compliant result in the current round of FATF evaluations. Now, the Hong Kong Monetary Authority has issued follow-up guidance to authorized institutions and SVF (stored value facility) in response to the FATF & APG’s mutual evaluation report.
As per the FATF’s report, Honk Kong has stringent AML/CFT measures. The report further mentions that the HKMA (Hong Kong Monetary Authority), SFC (Securities and Future Commission) and IA (Insurance Authority) have a very structured supervisory framework to monitor AML/CFT compliance, however, Honk Kong faces a significant risk of attracting criminals who seek to launder their illegal money.
The HKMA believes that there is still room for improvement as Hong Kong needs to address serious threats arising from foreign crimes such as corruption and tax evasion. The HKMA officials confirm that the authority will continue to deploy the full range of supervisory and enforcement measures in a proportionate and graduated manner to prevent the threats.
In order to meet the recommendation submitted by the FATF, the HKMA will continue working with the banking and SVF sectors (*including various stakeholders). The HKMA believes that close corporation and coordination will strengthen the AML/CFT regime of Honk Kong.
Source – Regulation Asia