Public Order 1 315
Action Against Money Laundering and the Financing of Terrorism
Maintaining an effective anti-money laundering and counter-terrorist financing (AML/CFT) regime is of great importance to Hong Kong as an international financial centre. The Government adopts a five-pronged approach to combating money laundering and terrorist financing. It includes a legal framework, supervision by financial regulators, vigorous law enforcement, international cooperation, and public education and capacity building.
To fulfil its international obligations under the 1988 United Nations Convention. Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, Hong Kong enacted the Drug Trafficking (Recovery of Proceeds) Ordinance in 1989 and the Organised and Serious Crimes Ordinance in 1994 which provide for the tracing, freezing, confiscation and recovery of proceeds from drug trafficking and other serious crimes. To give effect to the United Nations Security Council Resolution 1373 and some of the measures stipulated in the Financial Action Task Force on Money Laundering (FATF) Special Recommendations, the United Nations (Anti-Terrorism Measures) (Amendment) Ordinance was promulgated in 2004. It provides for, among other things, the power to freeze the non-fund property of terrorists and terrorist organisations. In order to fulfil another FATF Special Recommendation, section 24C(1) and schedule 6 of the Organised and Serious Crimes Ordinance was amended in January to require remittance agents and money changers to verify customers' identity and to keep records of transactions of $8,000 or more, instead of the previous threshold of $20,000 or above.
Since the enactment of the Drug Trafficking (Recovery of Proceeds) Ordinance and the relevant sections of the Organised and Serious Crimes Ordinance, assets valued at $462 million have been confiscated and handed to the Government. As at December 31, 2007, assets worth $88 million were to be confiscated. A further sum of $2,613 million was put on hold pending confiscation proceedings under the two ordinances.
On public education and capacity building for the practitioners, the Narcotics. Division collaborated closely with the Joint Financial Intelligence Unit (JFIU) and co- organised a total of 13 training seminars for financial institutions and designated non-financial businesses and professions (DNFBPs) in June. At the request of the trade, a sector-specific seminar was organised for precious metals and stones dealers in November, and another for the trust and company service providers in December. Two training seminars and workshops were also organised for the charities sector and relevant government officers to raise their awareness of terrorist financing.
An interactive training kit was produced to raise awareness among estate agents, precious stones and precious metals dealers, remittance agents and money changers and money lenders, and to guide them in making reports on suspicious transactions. In addition, thematic Announcements in the Public Interest, 'Be a Gatekeeper for Hong Kong', and related publicity materials were produced for raising anti-money laundering awareness among the DNFBPS and the public. The ND had also formed focus groups in four of these sectors to discuss issues related to the implementation of the FATF recommendations.