Hong Kong regulator provides advice on customer due diligence and proof of addresses
HONG KONG – The Hong Kong Monetary Authority (HKMA) has issued new anti-money laundering guidelines for authorised institutions.
The Industry Working Group on the Prevention of Money Laundering and Terrorist Financing (IWG) has developed two guidance papers: Customer Due Diligence Process for Offshore Companies and Address Proof for Personal Customers.
Both papers have been developed by a user subgroup on the customer due diligence (CDD) process formed under the auspices of the IWG. The due diligence paper proposes new industry standards in undertaking CDD on offshore companies, while the paper on proof of address provides institutions with guidance on how to tackle situations where customers have difficulty providing such proof.
The HKMA says it expects all authorised institutions to give full consideration to the adoption of the practices set out in the two guidance papers. In cases where management decides not to follow the recommended practices, they should be satisfied that either the recommended practices do not apply to their institution, or their institution has adopted alternative control measures that are equally effective and that enable their institution to fully comply with the HKMA's AML/CFT guidelines and circulars.
More on Regulation
Dodd-Frank and Mifid II won't stop market disorder but will penalise hedgers
Floors framework should not overstate risk, says Sweden's bank supervision chief
RBS risk veteran says banking activities pose greater threat
Banks will have to figure out what constitutes ‘critical activities’ for themselves
Sign up for Risk.net email alerts
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.