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Clifford Chance

Clifford Chance

Regulatory Investigations and Financial Crime Insights

Hong Kong eyes international best practices with 2018 amendment to AML Ordinance

Amendments to Hong Kong's Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (Cap 615) (AMLO) and the Companies Ordinance (Cap 622) will come into effect on 1 March 2018 to bring Hong Kong's anti-money laundering and counter-terrorist financing (AML/CTF) regime closer to international standards promulgated by the Financial Action Task Force (FATF), an international AML standard setting body. 

Later this year, FATF will undertake a long-awaited Mutual Evaluation of Hong Kong's AML/CTF regime. The HKSAR Government has implemented numerous statutory and regulatory changes since the previous FATF Mutual Evaluation, in 2008, and follow-up report, in 2012, both of which cited numerous deficiencies against FATF's international standards. The HKSAR's remedial efforts have included the implementation of the AMLO and more vigorous oversight by regulators such as the Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC).