11 March 2002
To: Chief Executive of all authorized insurance institutions
carrying on long term business
Dear Sir/Madam,
List of Suspicious Activities Indicators Commonly Associated with Money Laundering in Hong Kong
I refer to the list of suspicious activities indicators commonly associated with money laundering in Hong Kong which was enclosed in the Appendix to my letter of 10 December 2001. The Police has recently updated the list, as shown in the website of the Joint Financial Intelligence Unit ("JFIU") (www.info.gov.hk/police/jfiu). You should refer, in addition to the Annex G of Guidance Notes on Prevention of Money Laundering issued by the Insurance Authority, to the updated list for identifying suspicious transactions and ensuring compliance with the suspicious transactions reporting requirements. A copy of such updated list with indicators relevant to the insurance industry is attached at Appendix 1 for your reference.
Non-cooperative Countries and Territories (" NCCT ")
Further to my letter of 10 December 2001, I wish to draw your attention to the Financial Action Task Force's ("FATF's") decision at its recent Plenary Meeting that none of the 19 jurisdictions should be removed from the NCCTs list for the time being. A complete list of the 19 NCCTs is shown under item 2 of the Appendix 1 to this letter. The FATF will review again the situation of each NCCT in June 2002.
You are required to continue to give special attention to businesses and transactions with persons, including companies and financial institutions, in these NCCTs, in accordance with Recommendation 21 (Note) of the FATF Forty Recommendations.
In addition, your attention is drawn to Nauru who has not adequately addressed the deficiencies found in its anti-money laundering legislation. In this regard, you are required to continue to apply counter-measures to Nauru as set out in paragraphs 7 to 11 of Annex I attached to my letter of 10 December 2001.
The FATF will review the NCCT list regularly. Any changes to the list will be conveyed to you through similar advisory in due course.
United States Executive Order 13224 ("Executive Order ")
Taking this opportunity, I also wish to inform you that, subsequent to my letter of 17 January 2002, the US Government designated under the Executive Order the ninth list of 21 names on 26 February 2002. This list is now attached at Appendix 2. It can also be found in the website of the Office of Foreign Assets Control under the US Treasury (www.ustreas.gov/ofac). You are advised to browse the website regularly for the latest information.
You should review your records carefully to see whether you have had, or currently have, accounts, transactions or dealings with those 21 individuals. If such review reveals any suspicious accounts, transactions or dealings, you should promptly notify the JFIU in order to ensure that you fulfill your obligations under section 25A of the Organized and Serious Crimes Ordinance in the usual way.
Should you have any enquiries, please contact Mr. William Hsieh at 2867 4529 or Ms. Carol Hui at 2867 2551.
Yours sincerely,
(Benjamin Tang)
Commissioner of Insurance
Note:
Recommendation 21 of the FATF Forty Recommendations states that financial institutions should give special attention to business relations and transactions with persons, including companies and financial institutions,from countries which do not or insufficiently apply these Recommendations. Whenever these transactions have no apparent economic or visible lawful purpose, their background and purpose should, as far as possible, be examined, the findings established in writing, and be available to help supervisors, auditors and law enforcement agencies.
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