XN000022-1990-04-30 — Page 4

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MONDAY, APRIL 30, 1990

THE REPORT SAID HONG KONG NOW HAD WELL-DEVELOPED MEASURES TO DISCOURAGE ITS BANKING SYSTEM BEING USED FOR DRUG MONEY LAUNDERING.

"BANKS AND DEPOSIT-TAKING COMPANIES ARE CO-OPERATING WITH THE AUTHORITIES TO IDENTIFY SUSPECTED DRUG TRAFFICKERS," MR NICOLLE SAID.

"THERE IS NO SOLID EVIDENCE TO SUPPORT ALLEGATIONS THAT HONG HE POINTED KONG IS PARTICULARLY PRONE TO BEING USED FOR LAUNDERING, OUT.

"A SERIOUS VIEW WOULD BE TAKEN OF ANY INSTITUTION WHICH FAILED TO TAKE PROPER STEPS TO GUARD AGAINST BECOMING A PARTY TO LAUNDERING, HE SAID.

LEGISLATION INTRODUCED DURING THE YEAR ΤΟ

TO CHANGES

MR NICOLLE SAID

AMEND THE BANKING THREE TIER SYSTEM.

ORDINANCE PRINCIPALLY

CONCERNED

THE

THE DESIGNATION OF LICENSED AND REGISTERED DEPOSIT-TAKING

BY COMPANIES WERE REPLACED

THAT OF RESTRICTED LICENCE BANKS AND DEPOSIT-TAKING COMPANIES RESPECTIVELY.

MR NICOLLE NOTED THAT HIS OFFICE'S RELATIONS WITH AUDITORS CONTINUED TO BE FRUITFUL AND CONSTRUCTIVE.

"TO

HAD

CATER FOR EXCEPTIONAL CIRCUMSTANCES WHEN A BILATERAL BE NECESSARY, MEETING BETWEEN THE COMMISSIONER AND THE AUDITOR WOULD LEGISLATION HAS BEEN INTRODUCED INTO LEGISLATIVE COUNCIL TO ENABLE AUDITORS TO DISCLOSE INFORMATION TO THE COMMISSIONER IN GOOD FAITH, WITHOUT BEING AT RISK OF SUIT FROM THEIR CLIENTS, HE SAID.

**

HONG HE ADDED THAT THE

KONG SOCIETY OF ACCOUNTANTS WOULD,

REVISE THEIR AFTER CONSULTATION WITH HIMSELF AND THE BANKING SECTOR, EXISTING GUIDELINE FOR ITS MEMBERS CLARIFYING THE CIRCUMSTANCES MEETINGS WITH THE

BE COMMISSIONER SHOULD

HELD IN A TRIPARTITE

BILATERAL BASIS.

THE REPORT ALSO EMPHASISED THE OFFICE'S CONTINUING THE PEOPLE'S BANK OF AND DEEPENING COMMUNICATIONS WITH WELL AS WITH OTHER SUPERVISORS IN HONG KONG, AND OVERSEAS.

WHEN

OR

BROADENING CHINA, AS

THE REPORT IS AVAILABLE FROM THE GOVERNMENT PUBLICATIONS CENTRE AT CONNAUGHT PLACE, CENTRAL AT $21 PER COPY.

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