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Supervision > Anti-Money Laundering and Counter-Terrorist Financing > Legislation

Legislation

The main pieces of legislation in Hong Kong that are concerned with money laundering, terrorist financing, financing of proliferation of weapons of mass destruction and financial sanctions are:
 
Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap.615) (“the AMLO”)
The AMLO creates the statutory obligations in relation to customer due diligence and record-keeping on specified financial institutions, which include insurance institutions carrying on or advising on long term business, and designated non-financial businesses and professions. It provides for the powers of relevant authorities including the Insurance Authority to supervise compliance with all requirements under the AMLO.

Drug Trafficking (Recovery of Proceeds) Ordinance (Cap.405) (“the DTROP”)
The DTROP contains provisions for the investigation of assets that are suspected to be derived from drug trafficking activities, the freezing of assets on arrest and the confiscation of the proceeds from drug trafficking activities upon conviction.

Organized and Serious Crimes Ordinance (Cap.455) (“the OSCO”)
The OSCO provides powers of investigation into organized crimes and triad activities as well as gives the Courts jurisdiction to confiscate the proceeds of organized and serious crimes. It creates an offence of money laundering in relation to the proceeds of indictable offences.

United Nations (Anti-Terrorism Measures) Ordinance (Cap.575) (the “UNATMO”)
The UNATMO is principally directed towards implementing decisions contained in relevant United Nations Security Council Resolutions (UNSCRs) aimed at preventing the financing of terrorist acts and combating the threats posed by foreign terrorist fighters. Besides the mandatory elements of the relevant UNSCRs, the UNATMO also implements the more pressing elements of the Financial Action Task Force Recommendations specifically related to terrorist financing.

United Nations Sanctions Ordinance (Cap.537) (the “UNSO”)
The UNSO provides for the imposition of sanctions against persons and against places outside the People’s Republic of China arising from Chapter 7 of the Charter of the United Nations. Most United Nations Security Council Resolutions are implemented in Hong Kong under the UNSO.
 
Weapons of Mass Destruction (Control of Provision of Services) Ordinance (Cap.526) (the “WMD(CPS)O”)
The WMD(CPS)O controls the provision of services that will or may assist the development, production, acquisition or stockpiling of weapons capable of causing mass destruction or that will or may assist the means of delivery of such weapons. Section 4 of WMD(CPS)O prohibits a person from providing any services where he believes or suspects, on reasonable grounds, that those services may be connected to financing of proliferation of weapons of mass destruction. The provision of services is widely defined and includes the lending of money or other provision of financial assistance.