WITH international law enforcement agencies becoming increasingly concerned about the laundering of money from drugs and other criminal activities, Hong Kong's Securities and Futures Commission (SFC) is urging greater vigilance on brokers and financial advisers in the territory.
The regulator has issued its guidelines to registered persons and licensed traders.
Although the 'guidance notes' released yesterday do not impose further regulatory responsibilities on the securities industry, they advise traders to be more sensitive to possible money laundering in stocks, bonds, futures and foreign exchange. They urged securities firms to establish procedures for identifying clients, maintaining records of transactions and disclosing and reporting suspicious transactions to authorities.
The SFC recommended that each firm develop education programmes for training staff in the detection and prevention of money laundering.
'This isn't a new law. It defines the standards financial institutions are expected to meet. The purpose of sending [the guidance notes] out is to make sure they comply,' SFC spokesman Bill Weeks said.
'Any penalties for breaches of the law would not be imposed by us,' he said.
The SFC issued the guidelines after consulting with the government and the Joint Financial Intelligence Unit, which was set up by the police and Customs and Excise departments of Hong Kong to enforce the laws.
