Formation of Industry Working Group on Prevention of Money Laundering and Terrorist Financing

The Hong Kong Monetary Authority (HKMA) announced today (Tuesday) the formation of the Industry Working Group (IWG) on Prevention of Money Laundering and Terrorist Financing.

The IWG comprises representatives from both the HKMA and the banking industry, and is chaired by Mr William Ryback, Deputy Chief Executive of the HKMA. A total of 19 authorized institutions, which include institutions of different sizes and business focus, were nominated as members of the IWG by the two industry Associations.

The mission of the IWG is to further strengthen the banking industry's preparedness to meet new challenges in the prevention of money laundering and terrorist financing activities through carrying out the following functions:

• encouraging the sharing of anti-money laundering and counter-terrorist financing (collectively known as "AML") experiences and techniques among authorized institutions;
• providing industry feedback to the HKMA on the implementation of AML supervisory standards;
• promoting the setting of AML industry standards and best practices on specific areas in which the industry may need more guidance. Where appropriate, user sub-groups led by industry representatives will be formed under the IWG to facilitate more in-depth review and discussion of individual areas; and
• raising the AML awareness of the industry and the general public (e.g. through organising briefings or seminars).

The IWG will meet regularly to consider and take forward initiatives that are conducive to fulfilling the above functions. It will also serve as a forum for discussing international AML developments and exchanging views on issues affecting the implementation of international AML standards and other related matters that are of special interest to the members.

"I am very pleased with the banking industry's strong support for the formation of the IWG, which is evidence of the industry's firm commitment to meeting international AML standards. The IWG also signifies the importance of partnership between the banking industry and the HKMA to deal with ongoing AML challenges," said Mr William Ryback, Chairman of the IWG. "We believe the AML regime here in Hong Kong is strong. But this is a complex and ever-changing area, hence the need for continuing efforts to guard against the use of the banking system by money launderers, criminals and terrorists."

For further enquiries, please contact:
Hing-Fung Wong, Resource Co-ordinator, at 2878 1802 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
13 June 2006