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Enforcement > Anti-Money Laundering and Counter-Terrorist Financing > Anti-Money Laundering and Counter-Terrorist Financing

Anti-Money Laundering and Counter-Terrorist Financing

Investigation

The Insurance Authority ("IA") is the relevant authority in relation to insurance institutions ("IIs"), which include authorized insurers and reinsurers carrying on long term business, and licensed individual insurance agents, licensed insurance agencies and licensed insurance broker companies carrying on regulated activities in respect of long term business, under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) ("AMLO"). The IA is empowered to investigate the suspected offences or non-compliance under sections 11 and 12 of the AMLO.

If the IA has reasonable cause to believe that an offence under the AMLO may have been committed or has reason to inquire whether the IIs have contravened a specified provision as defined by section 5(11) of the AMLO, the IA may initiate an investigation under section 11 of the AMLO.

The appointed investigators may require a person to produce a record or document, give an explanation in respect of the record or document, answer a question relating to the investigation, and give other assistance.

Disciplinary Action

The IA may take disciplinary actions against IIs for any contravention of a specified provision as defined by section 5(11) of the AMLO under section 21 of the AMLO. The disciplinary actions may include:

  • publicly reprimanding the II;
  • ordering the II to take remedial actions; and
  • ordering the II to pay a pecuniary penalty not exceeding the greater of HK$10 million or 3 times the profit gained or costs avoided as a result of the contravention.

In exercising the IA’s power to impose pecuniary penalty, the IA shall have regard to the Guideline on Exercising Power to Impose Pecuniary Penalty in respect of Anti-Money Laundering and Counter-Terrorist Financing (GL3A) for factors to be considered.

IA's disciplinary decisions made under the AMLO are appealable to a statutory and independent body, the Anti-Money Laundering and Counter-Terrorist Financing Review Tribunal (the “Tribunal”). If the affected person is aggrieved by the disciplinary decision of the IA, the person may apply in writing to the Tribunal for the decision to be reviewed within 21 days after a notice informing the person of the decision has been served.