Supplement to the Guideline on Prevention of Money Laundering

The Hong Kong Monetary Authority (HKMA) today (Tuesday) issued a revised Supplement to the Guideline on Prevention of Money Laundering (the "Supplement") and a set of Interpretative Notes.

The Supplement sets out the latest "Know-Your-Customer" principles, taking account of the requirements of the paper on "Customer Due Diligence for Banks" issued by the Basel Committee on Banking Supervision in October 2001 and the revised Forty Recommendations issued by the Financial Action Task Force on Money Laundering in June 2003. It covers not only the account opening process for various types of new customers, such as individuals, companies, trust and nominee accounts, introduced customers, non-face-to-face customers, respondent banks and politically exposed persons, but also the on-going monitoring process for existing customers. It also incorporates the latest requirements relating to terrorist financing.

In collaboration with the Hong Kong Association of Banks and the DTC Association, a set of Interpretative Notes has been developed to provide practical guidance on implementing the requirements of the Supplement and explain the use of a risk-based approach in various due diligence processes.

"In developing the Supplement and its Interpretative Notes, it has been our aim to ensure that there are adequate safeguards against money laundering in the banking system, while at the same time having regard to practicalities and the need to be business-friendly. These measures reflect Hong Kong's longstanding and on-going commitment to meeting international standards in fighting money laundering and terrorism," said Mr Simon Topping, Executive Director (Banking Policy) of the HKMA.

The Supplement and the Interpretative Notes can be viewed or downloaded from the website of the HKMA (www.hkma.gov.hk).

For further enquiries, please contact:

Jasmin Fung, Manager (Press), at 2878 8246 or
Thomas Chan, Senior Manager (Press) at 2878 1480

Hong Kong Monetary Authority
8 June 2004

Enclosures

Supplement to the Guideline on Prevention of Money Laundering (PDF file, 163KB)

Interpretative Notes (PDF file, 148KB)

Related Information

Powerpoint Presentation (PowerPoint file, 254KB)