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.
The week in Risk.net, February 10-16 2017Receive this by email
- Operational risk in financial services: Navigating risk management challenges in an uncertain world
- UK banks face increased XVA burden after ring-fencing
- State aid, Brexit’s impact on Mifid, and the Fed embattled
- Three Japanese banks consider new CVA approach
- Cognitive GRC: Bringing the value to governance, risk and compliance