Frequently Asked Questions in relation to Anti-Money Laundering and Counter-Financing of Terrorism (Developed by the Hong Kong Association of Banks) (PDF File, 338.1 KB)

The Hong Kong Monetary Authority (HKMA) has published an updated version of the Frequently Asked Questions [FAQs] in relation to Anti-Money Laundering and Counter-Financing of Terrorism that were developed by the Hong Kong Association of Banks. The goal of the FAQs is to provide guidance to firms with respect to their anti-money laundering (AML) and combating the financing of terrorism (CFT) obligations. The FAQs thereby address diverse issues in this regard, ranging from the frequency to conduct ML and FT risk assessments, to the process of identifying and verifying customer identity, to the level of due diligence an institution should apply.
This latest revised version contains the following update:
A new question in the section „Law enforcement requests“ was added (now question #75) and the numbers of all subsequent questions were modified accordingly (number +1). The new question reads as follows, as quoted:
FAQ 75: Question: When an AI receives notification letters from law enforcement agencies, what measures would the AI be expected to take?
Answer: From time to time, law enforcement agencies may inform an AI of intelligence suggesting that potential suspicious transactions may have been conducted through particular bank account(s) maintained with the AI, e.g. through a notification letter. The AI should take necessary actions with regard to the contents of the notification letter from a law enforcement agency, for example, conducting a review in a timely manner. Appropriate risk mitigating measures including those required under relevant laws and regulations should be taken based on the review results.
If the case information in a notification letter has also been made known to the public by law enforcement agencies (e.g. Scameter), the AI should assess the potential risks that may arise (e.g. reputational risks), and if necessary, take timely and effective measures to mitigate the risks.