This picture taken on Aug 3, 2019 shows a general view of residential and commercial buildings in the Kowloon district (foreground) with the skyline of Hong Kong Island past Victoria Harbour (center) in the distance. (ANTHONY WALLACE / AFP)
HONG KONG – The government of the Hong Kong Special Administrative Region said it would focus on five areas in strengthening its work in anti-money laundering and counter-terrorist financing.
The move came as the government published on Friday the latest issue of the Money Laundering and Terrorist Financing Risk Assessment Report.
READ MORE: HK: Bill to curb laundering, terror financing gazetted
The report examines the money laundering and terrorist financing threats and vulnerabilities facing various sectors in Hong Kong and the city as a whole according to the requirements of the Financial Action Task Force, an inter-governmental body that sets international standards on combating such crimes.
To address the risks identified, the government will focus on enhancing the legal and regulatory framework, strengthening risk-based supervision and partnerships, stepping up outreach and awareness-raising, monitoring new and emerging risks, as well as strengthening law enforcement efforts and intelligence gathering capability
The latest report also for the first time assesses the risk of proliferation financing faced by Hong Kong.
To address the risks identified, the government will focus on enhancing the legal and regulatory framework, strengthening risk-based supervision and partnerships, stepping up outreach and awareness-raising, monitoring new and emerging risks, as well as strengthening law enforcement efforts and intelligence gathering capability.
In particular, the government will introduce a proposal to the Legislative Council to amend the Anti-Money Laundering and Counter-Terrorist Financing Ordinance in order to introduce a licensing regime for virtual asset service providers and a registration regime for dealers in precious metals and stones.
Under the proposed registration, any person who is seeking to carry on a business of dealing in precious metals and precious stones in the city will be required to register with the Commissioner of Customs and Excise.
There will be two categories of registrants, classified on the basis of whether such dealers are seeking to engage in cash transactions at or above HK$120,000 in the course of their business.
The proposed legislative amendment aims to mitigate the risks of the sectors and protect investors, it said.
ALSO READ: HK arrests six in US$322m money laundering case
The government said as an international financial center, Hong Kong attaches great importance to safeguarding the integrity of its financial systems. It added that the city received positive recognition of its anti-money laundering and counter-terrorist financing regime from the Financial Action Task Force in 2019.
The government will continue to monitor and respond to the risks with vigilance, it said.