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The Anti-Money Laundering & Counter-Terrorist Financing (Amendment) Bill 2022 has been passed on 7 December 2022 which reinforces Hong Kong’s status as an international financial centre by enhancing the city’s regulatory regime for combating money laundering and terrorist financing, and by formulating a comprehensive and balanced regulatory framework for virtual asset (VA) activities to protect investors.
Under the amended Anti-Money Laundering & Counter-Terrorist Financing Ordinance, any person who engages in VA exchange business is required to apply for a licence from the Securities & Futures Commission (SFC).
Apart from satisfying the fit and proper test, conducting customer due diligence and record keeping, the relevant people must also meet other regulatory requirements on investor protection, such as safe custody of client assets, financial soundness and avoiding conflicts of interest.
In addition, licensed VA exchanges and their wholly owned subsidiaries need to regularly submit audited accounts and financial information to the SFC.
The commission is also empowered to enter business premises for conducting inspections and investigations when necessary. It will carry out a further consultation on the detailed regulatory requirements of the regime.
Separately, any person who is seeking to carry on a business of dealing in precious metals and stones in Hong Kong and engage in transactions at or above $120,000, cash or non-cash, is required to register with the Commissioner of Customs & Excise.
No registration is required for dealers who only conduct transactions under $120,000.
The amended ordinance, including the registration regime for dealers in precious metals and stones, will take effect on April 1, 2023, while the licensing regime for VA service providers as well as other amendments on AML/CTF requirements, will take effect on June 1, 2023.
Whatsapp : (852) 6499 4686 Phone : (852) 2186 6936 Email : info@intershores.hk Disclaimer: Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES does not accept any responsibility, legal or otherwise, for any error omission and accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, readers are advised to take appropriate professional advice before committing themselves to any involvement in jurisdictions, vehicles or practice. |
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