Consultation on the Legislative Proposals to Enhance Anti-Money Laundering and Counter-Terrorist Financing Regulation

Another consultation paper was issued by the Financial Services and the Treasury Bureau (“FSTB”) on 3 November 2020 (“Consultation Paper”) on legislative proposals to enhance Anti-Money Laundering and Counter-Terrorist Financing Regulation (“AML/CTF Regulation”) in Hong Kong.

The Consultation Paper sought views on legislative proposals to enhance the AML/CTF Regulation in Hong Kong in order to meet with the international standards set by The Financial Action Task Force (“FATF”). The FATF was established in 1989 to set international standards for combating money laundering and terrorist financing. Hong Kong has been a member of the FATF since 1991.

The Consultation Paper introduced (a) a licensing regime for virtual asset service providers (“VASP”); (b) a registration regime for dealers in precious metals and stones; and (c) miscellaneous technical amendments under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).

With the assistance of its specialist committees, the Law Society provided views on the Consultation Paper and made a submission in response thereto. In summary, the Law Society agreed with most of the FSTB’s proposals. It was additionally suggested that the VASP licensing regime could extend to non-Hong Kong companies (as defined in the Companies Ordinance (Cap. 622)) on top of the locally incorporated companies.

The above submission could be found in the link below

http://www.hklawsoc.org.hk/pub_e/news/submissions/20201222a.pdf

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