Circular
13 July 2012
Circular to Licensed Corporations and Associated Entities
Anti-Money Laundering / Combating Terrorist Financing
Amendments to Guideline on Anti-Money Laundering and Counter-Terrorist
Financing
SFC published in the Gazette today (G.N. 4725 of 2012) amendments to Guideline on AntiMoney Laundering and Counter-Terrorist Financing (“AML Guideline”) (see Attachment 1).
The amendments take immediate effect.
These amendments were made to the AML Guideline in order to reflect the recently enacted
United Nations (Anti-Terrorism Measures) (Amendment) Ordinance 2012 (“UNATMO 2012”)
(L.N. 20 of 2012) (Note 1) which:
(1) amended the United Nations (Anti-Terrorism Measures) Ordinance (“UNATMO”) in,
among others, the following areas:
(a)
repealing the definition of “funds” and replacing the term “funds” by “property”; and
(b)
expanding the prohibition on assistance for terrorists and terrorist associates to also
cover the collection of property for terrorists and terrorist associates.
(2) made consequential amendments to the Anti-Money Laundering and Counter-Terrorist
Financing (Financial Institutions) Ordinance (“AMLO”) that have ensured that the
definition of “terrorist financing” under the AMLO continues to tally with the UNATMO.
As the AML Guideline makes reference to and explains various provisions of the UNATMO
and AMLO, corresponding amendments were made to the AML Guideline. The amended
AML Guideline is available on the SFC’s website
(http://www.sfc.hk/sfc/html/EN/intermediaries/supervision/prevention/prevention.html).
Licensed corporations and associated entities are advised to familiarise themselves with the
amended UNATMO, AMLO and AML Guideline and take all necessary steps to ensure
compliance with the applicable requirements.
Should you have any queries regarding the contents of this circular, please contact Ms Kiki
Wong on 2840 9569.
Intermediaries Supervision Department
Securities and Futures Commission
Enclosure
End
1 of 2
Tel: (852) 2840 9222
Fax: (852) 2284 4660
Website: www.sfc.hk
Note:
1. The UNATMO 2012 was gazetted today which takes immediate effect. It can be found on
the Government’s website (http://www.gld.gov.hk/cgi-bin/gld/egazette/index.cgi?lang=e).
Please see our circular dated 17 February 2012 regarding the background of the United
Nations (Anti-Terrorism Measures) (Amendment) Bill 2012.
SFO/IS/016/2012
2 of 2
Tel: (852) 2840 9222
Fax: (852) 2284 4660
Website: www.sfc.hk
Attachment
1
G.N.4725
Sucunrlrus nNu Fulunus ORulNaNcu (Chapter 571)
(Notice under section 399)
ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING
(FINANCIAL INSTITUTIONS) ORDINANCE (Chapter 615)
(Notice under section 7)
Notice is hereby given that pursuant
to:-
(i) section 399(1) of the Securities and Futures Ordinance; and
(ii) section 7(l) of the Anti-Money Laundering and Counter-Terrorist Financing (Financial
Institutions) Ordinance,
the Securities and Futures Commission publishes the following amendments to the Guideline on
Anti-Money Laundering and Counter-Terrorist Financing ('the Guideline'):(a) Replace paragraph 1.11 of the Guideline with the following:'1.11 The term'terrorist financing'is defined in section 1 of Part 1 of Schedule I to the
AMLO and means:(a) the provision or collection, by any means, directly or indirectly, of any
property:(i) with the intention that the property be used; or
(ii) knowing that the property will be used,
in whole or in part, to commit one or more terrorist
(b)
(r)
(b)
acts (whether or not the
property is actually so used); or
the making available of any property or financial (or related) services, by any
means, directly or indirectly, to or for the benefit of a person knowing that, or
being reckless as to whether, the person is a terrorist or terrorist associate; or
the collection of property or solicitation of financial (or related) services, by
any means, directly or indirectly, for the benefit of a person knowing that, or
being reckless as to whether, the person is a terrorist or terrorist associate.'
Amend paragraph 1.23 of the Guideline
by:-
(i) replacing the word 'funds' appearing after the words 'collection of' with the word
'property'; and
(ii) replacing the word 'funds' appearing after the word 'making' with the words
'any
property'.
(c)
(d)
(e)
Amend paragraph 6.7 of the Guideline by replacing the word 'funds'wherever appearing
with the word 'property'.
Replace paragraph 6.13 of the Guideline with the following:'6.73 It is an offence for any person to make any property or financial services available,
by any means, directly or indirectly, to^or for the benefit of a terrorist or terrorist
assocrate except under the authority of a licence granted by S for S. It is also an
offence for any person to collect property or solicit financial (or related) services,
by a1y means, directly or indirectþ, for the benefit of a terrorist or terrorist
associate. Contraventions are subject to a maximum sentence of 14 years
imprisonment and an unspecified fine.'
of the Guideline with the following:'6.74 Section 8 of the UNATMO does not affect a freeze per se; it prohibits a person
from (i) making available, by any means, directly or indirectly, any property or
fìnancial services to or for the benefit of a person he knows or has reasonable
grounds to suspect is a terrorist or terrorist associate, in the absence of a licence
granted by S for S; and-(ii) collecting. property or soliciting Ínancial (or related)
servlces, by any means, directly or indirectly, for the benefit of a person he knows
or has reasonable grounds to suspect is a terrorist or terrorist associate.'
Replace paragraph 6.14
(fl
Amend paragraph 6.15 of the Guideline by replacing the word 'funds' with the word
'property'.
(g) Amend paragraph 7.14 of the Guideline by replacing the word 'funds' appearing in the
last paragraph with the word 'property'.
(h) Amend paragraph 8.1 of the Guideline by adding the words'property or'before the word
'funds' appearing in the first sentence.
The amendments to the Guideline will come into effect on 13 July 2012.
10 July
2012
Alexa LAM Acting Chief Executrr;"r"#:"ö:å#{rr:;:i