HONG KONG SFC PROVIDES UPDATE ON MIC REGIME AND ANNOUNCES THEMATIC REVIEW OF LICENSED CORPORATIONS’ GOVERNANCE

In the latest issue of its SFC Compliance Bulletin: Intermediaries published on 16 May 2018, the Securities and Futures Commission (SFC) provides an update on the implementation of the Manager-in-Charge (MIC) regime and announces that it will conduct a thematic review of licensed corporations’ (LC) management structure and effectiveness. Continue reading

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Filed under Asia, Hong Kong, Sector Updates by Herbert Smith Freehills

HONG KONG INSURANCE AUTHORITY PUBLISHES DRAFT ENTERPRISE RISK MANAGEMENT GUIDELINE FOR CONSULTATION

The Hong Kong Insurance Authority (IA) has launched a consultation on a draft Guideline on Enterprise Risk Management (ERM), as part of the qualitative (ie, Pillar 2) requirements under the proposed risk-based capital (RBC) regime. Continue reading

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Filed under Hong Kong, Insurance, Regulatory Reform

MONEY LAUNDERING AND TERRORIST FINANCING RISKS FACING HONG KONG’S FINANCIAL INSTITUTIONS AND PAYMENT SYSTEMS

The Hong Kong government has published a report detailing the money laundering (ML) and terrorist financing (TF) risk assessment of Hong Kong. This follows the recommendations of the Financial Action Task Force (FATF) that jurisdictions identify and assess their ML/TF risks and apply mitigating measures, and is a pre-cursor to the FATF’s onsite evaluation of Hong Kong’s ML/TF safeguards, scheduled to take place this autumn.

The report examines the ML/TF threats and vulnerabilities facing Hong Kong as a whole as well as specific sectors. The key aspects of the report are highlighted in our e-bulletin of 4 May 2018. In a follow-up e-bulletin (please click here to access), we provide an overview of the report’s findings in relation to financial institutions and payment systems.

Among others, the Securities and Futures Commission, the Hong Kong Monetary Authority and the Insurance Authority have issued circulars to alert the entities under their purview of the report and provide guidance.

 

William Hallatt
William Hallatt
Head of Financial Services Regulatory, Hong Kong
Email | Profile
+852 2101 4036
Vicky Man
Vicky Man
Senior Associate, Hong Kong
Email | Profile
+852 2101 4243
Jackie Lam
Jackie Lam
Associate, Hong Kong
Email
+852 2101 4194

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Filed under Asia, Bribery and Corruption, Corporate Crime, Hong Kong, Investigations, Sanctions and Money Laundering, Sector Updates by Herbert Smith Freehills

ASIC updates its ICO guidance

What this means for you

Initial Coin Offering (ICO) issuers have been placed on notice that from 19 April 2018, the Australian Competition and Consumer Commission (ACCC) has delegated powers to the Australian Securities and Investments Commission (ASIC) to enable ASIC to take action under the Australian Consumer Law (ACL) relating to crypto-assets. See ASIC’s Media Release 18-122MR.

This new power enables ASIC to take action against entities using ICOs to raise funds, for conduct that is misleading and deceptive, including making false or inaccurate statements in white papers.  The new delegated powers are applicable to both crypto ‘currency’ and to crypto ‘tokens’. Continue reading

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Filed under ASIC, Australia

UNITED STATES ANNOUNCES COMPLETE WITHDRAWAL FROM THE JCPOA, AND PROVIDES WINDING-DOWN PERIOD BEFORE SANCTIONS RE-IMPOSITION

On May 8, 2018, President Trump announced that the United States will completely withdraw from the Joint Comprehensive Plan of Action (the “JCPOA“). The JCPOA, signed in July 2015 and implemented on January 16, 2016, lifted most US nuclear related secondary sanctions and certain US primary sanctions targeting Iran. Prior to the JCPOA, the US had also imposed a broad range of “secondary sanctions” – applicable to dealings of non-US persons with sanctioned Iranian parties – in a number of key economic sectors in Iran, including automobile, energy and finance. The President’s announcement today states that all pre-JCPOA nuclear related sanctions will be re-imposed (both primary and secondary), and indicates that the US may impose new and additional sanctions in the future, going beyond the already highly restrictive sanctions regime which preceded the JCPOA. Continue reading

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Filed under Announcements, Bribery and Corruption, Corporate Crime, Regulatory Reform, Sanctions and Money Laundering, Sector Updates by Herbert Smith Freehills, US

REGULATION IN THE AGE OF CRYPTOCURRENCIES

Blockchain technology is ushering in a new epoch of monetary oversight, creating opportunities and challenges for regulators in a world disrupted by the advent of cryptocurrencies

As of 3 May 2018, according to CoinMarketCap, the current market capitalisation of Bitcoin and all other cryptocurrencies stands at USD409 billion. 193 cryptocurrency exchanges are now operating globally, located in many jurisdictions from South Korea to the Seychelles. Initial coin offerings (ICOs) have also flourished as a fundraising method. ICO funding for the first quarter of 2018 was USD6.3 billion, almost 20 percent higher than the previous year, according to Coindesk.

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Filed under Asia, Hong Kong, Regulatory Reform, Sector Updates by Herbert Smith Freehills

HONG KONG GOVERNMENT ISSUES IMPORTANT MONEY LAUNDERING AND TERRORIST FINANCING RISK ASSESSMENT

The government has this week published a comprehensive report detailing Hong Kong’s Money Laundering and Terrorist Financing (ML/TF) Risk Assessment. This is the product of a year’s consultation, data analysis and stakeholder engagement by the government.

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Filed under Asia, Bribery and Corruption, Corporate Crime, Hong Kong, Investigations, Sanctions and Money Laundering

Corporate Crime update – April 2018

Welcome to the April 2018 edition of our corporate crime update – our round up of developments in relation to corruption, money laundering, fraud, sanctions and related matters. Our update now covers a number of jurisdictions. Below we provide a brief overview of what is covered in each update.  Continue reading

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Filed under Asia, Bribery and Corruption, Corporate Crime, Europe, Investigations, Sanctions and Money Laundering, Sector Updates by Herbert Smith Freehills

LIGHTER TOUCH, OR MORE OF THE SAME? MAS ISSUES CONSULTATION PAPER ON PROPOSED GUIDELINES ON INDIVIDUAL ACCOUNTABILITY AND CONDUCT

On 26 April 2018, the Monetary Authority of Singapore (MAS) issued a Consultation Paper on its proposed, and much-anticipated, senior manager accountability regime in the form of ‘Guidelines on Individual Accountability and Conduct’ (Guidelines).

The Consultation Paper comes soon after the release of the Financial Stability Board’s (FSB) Toolkit for firms and regulators to use to strengthen governance frameworks to mitigate misconduct risk. The Toolkit encourages regulators to develop and monitor a responsibility and accountability framework.

A brief summary of the Guidelines is set out below. You can also read our bulletin on the FSB’s Toolkit here. Continue reading

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Filed under Asia, Sector Updates by Herbert Smith Freehills, Singapore

NEW BENEFICIAL OWNERSHIP REGIME IN INDONESIA POSES COMPLIANCE RISKS FOR CORPORATES

Effective from 5 March 2018, all corporations in Indonesia are required to disclose at least one person as their beneficial owner upon registering for business, pursuant to the Presidential Regulation (Perpres 13/2018) signed by President Joko Widodo on 1 March 2018. Continue reading

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Filed under Asia, Bribery and Corruption, Sanctions and Money Laundering, Sector Updates by Herbert Smith Freehills