TNAG-2080-FCO40-2960-Hong-Kong-politically-sensitive-issues-1991 — Page 24

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

機密

CONFIDENTIAL

Issue

10

Objective/explanation

Present status/progress

China

interest*

UK

interest*

Secretary for Monetary Affairs

U.S. information

and reporting

requirements on

banks

The Kerry Amendment to the U.S. Anti-Drug Abuse Act, the Advanced Notice on Proposed Rulemaking on International Payments and some of the proposed legislation in the recent U.S. Senate Subcommittee Report on Drug Money Laundering, Banks and Foreign Policy cause concern because of extra-territoriality and their possible adverse implications on banks operating in Hong Kong. The Hong Kong Association of Banks is also concerned.

In connection with the Kerry Amendment, the Americans' response on alternative information exchange arrangement provided in the context of the draft model agreement for the purpose of designation under section 28 of the Drug Trafficking (Recovery of Proceeds) Ordinance is awaited. Ag. FS conveyed to the U.S. Consulate General in Hong Kong our concern regarding the Proposed Rulemaking on International Payments along the UK line. In relation to the U.S. Senate Subcommittee Report on money laundering etc., we decided that tactically we should only respond to specific approaches or legislative initiative from the U.S. administration. Developments are being monitored. In the meantime, action is in train to continue to seek

the extension of the UK Protection of Trading

X

CONFIDENTIAL #

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