Hong Kong's Anti-Money Laundering Efforts Praised

by Mary Swire, for LawAndTax-News.com, Hong Kong

23 July 2008

International anti-money laundering groups have praised Hong Kong's regimes to counter crime and terrorist-financing.

The comments were made in an evaluation report published on 21st July by the Financial Action Task Force (FATF) on Money Laundering, and the Asia-Pacific Group on Money Laundering.

The report commended Hong Kong for its good legal structure and conviction rate for money laundering offences, clear and broad obligations for reporting suspicious transactions and strong law enforcement.

It said the city's supervisory regime over the banking, securities and insurance sectors is effective with comprehensive obligations and a broad range of sanctions, along with proactive and effective outreach to the private sector and international co-operation.

Hong Kong's formation of the Central Co-ordinating Committee on Anti-Money Laundering & Counter Financing of Terrorism chaired by the Financial Secretary was also a welcome development, it said.

On the report's suggestions for further improvements, the Security Bureau said it will formulate legislative proposals, enhance law enforcement in regulating remittance agents and moneychangers, and consult the industry.

As a taskforce member, Hong Kong is obliged to adopt the 40 recommendations for fighting money laundering and the nine special recommendations for combating financing of terrorism.

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