Weapons of Mass Destruction (Control of Provision of Services) Ordinance

Guideline No. 3.10

Weapons of Mass Destruction (Control of Provision of Services) Ordinance

I am writing to draw your attention to the above Ordinance which was passed by the Legislative Council today. The new Ordinance will be gazetted and come into effect on Friday, 27 June 1997.

The Ordinance prohibits the provision of services that will or may assist the development, production, acquisition or stockpiling of weapons of mass destruction, or the means designed for the delivery of such weapons. It is immaterial whether the development, production etc takes place in Hong Kong or elsewhere.

Weapons of mass destruction are defined as any biological, chemical or nuclear weapons and the means designed for the delivery of such weapons.

The provision of services is defined as an act that confers a benefit on, grants a right or privilege to, provides a facility for, or otherwise assists, someone, including anything done under -

It is the reference in sub-paragraph (b) to financial services which is of particular relevance to authorised institutions and is the specific reason why this Ordinance is being brought to your attention.

The Ordinance creates a criminal offence of providing services to another person while believing or suspecting that the services will or may assist the development, production, acquisition or stockpiling of weapons of mass destruction.

The Ordinance provides for the criminal liability of officials of a body corporate (such as an authorised institution) for offences committed by the body corporate with the consent and connivance of such officials.

The Monetary Authority expects authorised institutions to comply with this Ordinance, as they should with Hong Kong legislation in general. Failure to do so will not only give rise to criminal offences, but will also call into question whether the institution concerned should continue to be authorised under the Banking Ordinance and whether its management is fit and proper.