HKMA Issues Warning To Banks On Anti-Money Laundering Measures.
LegalNews & Analysis – Asia Pacific - Hong Kong – White Collar Crime
22 June 2015
The Deputy Chief Executive of the Hong Kong Monetary Authority, Mr. Arthur Yuen, announced today that some banks in Hong Kong may have failed to meet anti- money laundering (AML) requirements. Mr. Yuen has said that the time has come for tougher enforcement of Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance, Cap 615 which came into force on 1st April 2012. 2 major problems were identified by the HKMA investigations as follows:
- The systems they have in place for KYC background checks on clients; and
- The maintenance of a good record-keeping system to monitor suspicious transactions for reporting to the Joint Financial Intelligence Unit.
The HKMA can directly impose penalties for breaches of the anti-money laundering law, without any formal prosecution through the Hong Kong courts. These penalties include remedy orders for banks to improve their system, a public reprimand, or a fine up to HKD 10m for each breach.
For further information, please contact:
Christopher Morley, Partner, Morley Chow Seto
Anita Chow, Partner, Morley Chow Seto
Eric Seto, Partner, Morley Chow Seto