The Anti-Money Laundering & Counter-Terrorist Financing (Amendment) Bill 2022 was passed on 7 December 2022.
The bill 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 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.
Date: 2022.12.07