Hong Kong

SFC concludes Consultation on Anti-Money Laundering Guidelines

The Securities and Futures Commission (SFC) has released consultation conclusions on proposed amendments to its anti-money laundering and counter-financing of terrorism (AML/CFT) guidelines.

The amendments aim to align the guidelines with the Financial Action Task Force’s (FATF) AML/CFT standards, which include additional guidance to facilitate the implementation of risk-based AML/CFT measures by securities industry participants, the SFC said in a press release.

While the proposals received broad support, a considerable number of comments were made on the requirements for cross-border correspondent relationships. In response, the revised guidelines provide greater clarity and additional flexibility in meeting the requirements.

As a global equities trading centre, our regulated firms in Hong Kong execute trades for overseas brokers in major financial hubs around the world,” said Ms Julia Leung, the SFC’s Deputy Chief Executive Officer and Executive Director of Intermediaries. “The amendments provide guidance to firms in assessing and managing the risks of cross-border correspondent relationships more effectively.”

The revised AML/CFT guidelines will become effective upon gazettal on 30 September 2021, with the exception of the new cross-border correspondent relationships requirements, which will take effect on 30 March 2022.