Hong Kong Consults Money Changers On Lowering KYC Threshold
The Hong Kong Security Bureau's Narcotics Division is seeking remittance agents
and money changers' views on a proposal to lower the threshold for verification
of a customer's identity and record keeping from $20,000 to $8,000, it emerged
last week. The proposal aims to enhance the effectiveness of Hong Kong's anti-money laundering
and counter-terrorist financing regime. It is in response to the Special Recommendation
VII of the Financial Action Task Force on Money Laundering, the international
anti-money laundering standard-setter. Approximately 1,700 remittance agents and money changers would be required
to verify customer identity and keep records of transactions over $8,000 under
the proposed rule. Remittance agents would also be required to record and retain particulars of
the sender and the instructor of a remittance transaction if the two are not
the same person, and would be encouraged to take an additional step to combat
terrorist financing more effectively by including the sender's information in
the message accompanying the remittance. Local remittance agents and money changers have been invited by the Narcotics
Department to forward their views and comments in writing by November 20. It is anticipated that the requirements will also be implemented by the banking
industry in January. .
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