A step towards increased AML/CTF enforcement? Hong Kong SFC consults on enhancements to AML/CTF guidelines

On 18 September 2020, the Hong Kong Securities and Futures Commission (SFC) commenced a three month consultation on a wide range of proposed changes to its Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Licensed Corporations) (Guideline) and the Prevention of Money Laundering and Terrorist Financing Guideline issued by the SFC for Associated Entities (AE Guideline). Continue reading

HSF trust companies survey: anti-money laundering compliance in focus

Between November 2019 and January 2020, the HSF private wealth and charities team conducted a survey of trust companies, asking firms of different sizes, from a variety of onshore and offshore jurisdictions, questions about the most significant risk and compliance issues they face.  We have been counting down the risks identified by respondents and this week we have reached anti-money laundering (AML) compliance: the second most significant challenge faced by trust companies.

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Happy New Year – Happy New Money Laundering Regulations

On 20 December 2019, we received a festive treat: the publication of the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (the “Regulations”).  The Regulations, which will come into force on 10 January 2020, implement the Fifth EU Money Laundering Directive (Directive (EU) 2018/843, “5MLD”)) in the UK, and follow a high level consultation in summer 2019.

The Regulations make some limited but important amendments to the existing Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“MLR“).  These include an expansion of the scope of the regulated sector, and changes to aspects of regulated firms’ customer due diligence and enhanced due diligence obligations (including, in particular, an important new requirement to make reports to Companies House in relation to discrepancies between information collected during customer due diligence and information on the Persons with Significant Control register).  In this briefing we review the changes and new obligations.

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