Hong Kong banks to disclose related property of clients who breach security law

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A basic view of Two Worldwide Finance Centre (IFC), HSBC headquarters and Financial institution of China in Hong Kong, China July 13, 2021. REUTERS/Tyrone Siu

HONG KONG, Oct 24 (Reuters) – Banks in Hong Kong are suggested to reveal associated property of purchasers who’re present in breach of town’s nationwide safety regulation, in line with the newest pointers from its banking affiliation.

The recommendation was launched in an Oct. 22 replace of the Hong Kong Affiliation of Banks’ (HKAB) incessantly requested questions in relation to anti-money laundering and counter-financing terrorism, which was printed on the web site of the Hong Kong Financial Authority (HKMA).

Banks ought to disclose property held by any consumer who’s arrested or charged for an offence endangering nationwide safety or after they have data or suspicion {that a} property is “offence associated property” after receiving data from regulation enforcement businesses, per the clause.

An HKMA spokesperson mentioned HKMA and the banking sector talk about implementation points with stakeholders together with regulation enforcement businesses within the anti-money laundering and counter-financing terrorism areas occasionally per worldwide practices.

“The FAQs are up to date in keeping with our typical apply in responding to questions raised by banks,” mentioned the spokesperson.

The HKAB didn’t instantly reply to a Reuters request for remark.

China imposed nationwide safety laws in Hong Kong on June 30 final yr, making something Beijing regards as subversion, secession, terrorism or colluding with international forces punishable by as much as life in jail.

Three months later, the banking affiliation added 5 clauses to the FAQs concerning anti-money laundering and counter-financing terrorism, advising banks of their reporting necessities underneath the regulation, how they need to deal with regulation enforcement requests and pointers concerning group-wide data sharing.

Transactions suspected to be linked to the regulation needs to be handled the identical as transactions suspected to be cash laundering or financing terrorism, in line with the clauses on the time.

The FAQs aren’t official pointers however apply to each Hong Kong and worldwide banks.

Reporting by Kane Wu; Enhancing by Kim Coghill


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