9 January 2003
To: Chief Executive of all authorized insurance institutions
carrying on long term business
Dear Sir/Madam,
Non-cooperative Countries and Territories
I advised you in my letter of 22 October 2002 the intention of the Financial Action Task Force ("FATF") to apply counter-measures on Nigeria and Ukraine, both being countries on the list of Non-cooperative Countries and Territories ("NCCTs").
Nigeria
On 14 December 2002, the Nigerian Government passed a new law "Money Laundering Act (Amendment) Act 2002". The FATF has conducted an assessment of the new legislation in Nigeria and decided not to apply counter-measures to Nigeria at this stage but that the situation in this country should be closely reviewed in February 2003. The country nevertheless remains on the NCCT list. I will keep you informed of any further development on this subject in due course.
Ukraine
The Ukrainian Government enacted a "Law of Ukraine on Prevention and Counteraction of the Legalization (Laundering) of the Proceeds from Crime" on 28 November 2002. However, this new legislation was found to have several deficiencies and did not address the major money laundering problems in Ukraine.
On 20 December 2002, the FATF called on its members to apply counter-measures to Ukraine with immediate effect. Such counter-measures, as applicable in the Hong Kong context, are detailed in paragraphs 7 to 11 of the jurisdiction-specific advisory which is attached at Annex I . Hong Kong, being one of the FATF members, is obliged to follow the decision of the FATF and you are requested to implement counter-measures to Ukraine. You may wish to refer to my letter of 10 December 2001 advising on the application of counter-measures to Nauru. In this regard, the same set of counter-measures described herein should apply to Nauru and Ukraine from now on.
The FATF will further review the NCCT list. Changes to the list, if any, will be conveyed to you through similar advisory in due course.
A copy of the FATF press release of 20 December 2002 in respect of Nigeria and Ukraine is attached at Annex II for your reference.
Should you have any enquiries, please contact Mr. William Hsieh at 2867 4529 or Ms. Carol Hui at 2867 2551.
Yours sincerely,
(Benjamin Tang)
for Commissioner of Insurance
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