The Financial Action Task Force (FATF) published today (February 17) a follow-up report on Hong Kong's anti-money laundering and counter-terrorist financing (AML/CTF) system, following a review undertaken by its reviewer and member jurisdictions.
             
     Hong Kong completed the fourth round of FATF mutual evaluation in 2018-19.  As a result of the mutual evaluation, Hong Kong's system has been assessed to be compliant and effective overall, making it the first jurisdiction in the Asia-Pacific region to have achieved an overall compliant result. The follow-up report is part of the follow-up assessment conducted by the FATF for jurisdictions which have completed the mutual evaluation.
 
     The follow-up report published today affirms Hong Kong's progress and efforts in implementing risk-based AML/CTF supervision for most designated non-financial business and profession sectors, in particular trust or company service providers, real estate agents and accountants. The FATF has also assessed Hong Kong's compliance with the FATF's requirements for virtual asset (VA) service providers and dealers in precious metals and stones (DPMS); and noted that Hong Kong was undergoing, at the time of assessment in 2022, a legislative process for introducing a regulatory regime for VA service providers and DPMS.
 
     The Financial Secretary, Mr Paul Chan, said, "The Government welcomes the FATF's adoption of Hong Kong's follow-up report and recognition of Hong Kong's efforts in strengthening our AML/CTF system. With the coming implementation of the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance in June this year, Hong Kong has demonstrated its unwavering commitment to combating money laundering and terrorist financing along international standards and in collaboration with partners around the world, and upholding the integrity of our financial system."
 
     The Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance establishes effective AML/CTF regulatory regimes for VA service providers and DPMS respectively. Observing international obligations, the regimes strengthen Hong Kong's status as an international financial centre. The regime for VA service providers is the first comprehensive regulatory framework around the world to include a full range of investor protection features to facilitate the responsible and sustainable development of the VA sector.
 
     The FATF is an inter-governmental organisation which sets global standards for combating money laundering and terrorist financing. Comprising 39 major economies of the world, the FATF conducts peer reviews of member jurisdictions regularly to assess their compliance with the international AML/CTF standards under a mutual evaluation process. Hong Kong has been a member of the FATF since 1991.

Ends/Friday, February 17, 2023
Issued at HKT 17:40

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