Anti-money laundering in Hong Kong
Tuesday 3 January 2012 - by Charlotte Robins
Financial intermediaries regulated in Hong Kong (whether by the Securities and Futures Commission, Hong Kong Monetary Authority or the Office of the Commissioner of Insurance) will need to reconsider their existing procedures in sufficient time to ensure that compliance occurs as of the effective date.
"Client" is defined in the Securities and Futures Ordinance as a person for whom the licensed corporation provides a service, the provision of which constitutes a regulated activity.
As noted, in a private fund structure, the fund will be the customer of the licensed private fund manager. It will be the fund's responsibility to conduct CDD on the fund investors and the private fund manager generally need only conduct CDD on the fund.
Simplified Due Diligence
CDD in respect of investment vehicles are specifically catered for in the AMLO and while such a term is undefined, a fund would fall within this broad category.
Simplified due diligence (SDD) may be conducted on the fund if the person responsible for carrying out measures similar to CDD in relation to the investors is one of the institutions listed in section 4(3)(d) of Schedule 2 of the AMLO.
|Login||Register||Most read||Most commented|
Will markets in 2012 have a tougher time than 2011?