Supplement to the Guideline on Prevention of Money Laundering

Our Ref:

13 August 2003

The Chief Executive
All Authorized Institutions

Dear Sir / Madam,

Supplement to the Guideline on Prevention of Money Laundering

As you may be aware, following the issuance of the above Supplement in March 2003, an Industry Forum on the Prevention of Money Laundering, chaired by the HKMA and consisting of representatives from the two industry Associations, was established. The objectives of the Industry Forum were to consider practical implications of the requirements set out in the Supplement, develop detailed interpretative guidance as appropriate, and identify areas for further development or refinement, taking into account the revisions to the FATF Forty Recommendations. Three subgroups in respect of public education, correspondent banking, and trust and private banking were also formed to look into those specialised areas.

To date, the Industry Forum has met twice and has considered a number of detailed issues on how the relatively high-level standards set out in the Supplement should be interpreted. In particular, it has discussed those lower risk situations where  simplified customer due diligence requirements may be applied.

In the light of the range of issues raised by participants in the Forum, it appears that more time may be required to prepare and issue the necessary interpretative guidance on how the Supplement should be implemented. The HKMA has therefore decided that the deadline for implementation of the Supplement should be extended beyond the original date of 30 September 2003. You will be advised of the revised implementation date when the work on preparing the interpretative guidance is further advanced.

In the meantime, authorized institutions should continue to adhere to the standards set out in the HKMA's original Guideline (last revised in 2000).

I am copying this letter to the two industry Associations.

Yours faithfully,

D T R Carse
Deputy Chief Executive

The Chairman, Hong Kong Association of Banks
The Chairman, The DTC Association
SFST (Attn: Mr Edmond Lau)

Last revision date : 01 August 2011