New guidelines issued on preventing money laundering

The Hong Kong Monetary Authority today (June 8) issued a revised supplement to the guideline on the prevention of money laundering.

The supplement sets out the latest principles, taking account of the requirements of the paper on 'Customer Due Diligence for Banks' issued by the Basel Committee on Banking Supervision in October 2001 and the revised Forty Recommendations issued by the Financial Action Task Force on Money Laundering in June 2003.

It covers the account opening process for various types of new customers, such as individuals, companies, trust and nominee accounts, and politically exposed persons, as well as the ongoing monitoring process for existing customers.

The supplement also incorporates the latest requirements relating to terrorist financing.

"In developing the supplement and its interpretative notes, the HKMA aims to ensure there are adequate safeguards against money laundering in the banking system, while at the same time having regard to practicalities and the need to be business-friendly," said the Executive Director of Banking Policy, Mr Simon Topping.

"These measures reflect Hong Kong's longstanding and ongoing commitment to meeting international standards in fighting money laundering and terrorism," he said.

The set of interpretative notes were developed in collaboration with the Hong Kong Association of Banks and the Deposit-taking Companies Association. The notes provide practical guidance on implementing the requirements of the supplement and explain the use of a risk-based approach in various due diligence processes.

The supplement and the interpretative notes can be viewed or downloaded from the website of the HKMA at www.hkma.gov.hk

Ends/Tuesday, June 8, 2004