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National security law: Hong Kong banks told by HKMA to report suspicious transactions
- New advice tells banks to report suspected national security violations as they would report incidents of money laundering, terrorism financing
- Controversial law targets acts of secession, subversion, terrorism and collusion with foreign forces
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Banks operating in Hong Kong have been told to report financial transactions believed to violate the city’s controversial national security law (NSL) as they would suspected incidents of money laundering or terrorism financing, according to the city’s top financial regulator.
In a document posted on its website, the Hong Kong Monetary Authority (HKMA) advised banks to file suspicious transaction reports for dealings that may be related to violations of the national security law to the city’s Joint Financial Intelligence Unit, an investigative division of the Hong Kong Police Force and the Customs & Excise Department.
“The obligation for reporting under the NSL will be triggered when an [authorised institution] ‘knows’ or ‘suspects’ that any property is offence-related property,” the HKMA said in an updated frequently asked questions document on its website.
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The advice, updated on September 30, encourages banks to report those transactions as they would for suspected violations of the city’s organised and serious crimes, drug trafficking and anti-terrorism laws, according to the HKMA, which also acts as the city’s de facto central bank. The obligation will apply to both local and international banks in the city.
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In general, banks are required to implement effective anti-money-laundering and counterterrorism financing systems, including “detecting and reporting suspicious transactions to law enforcement agencies for investigation,” a HKMA said in a statement. “There is no change to the relevant international standards and the HKMA’s requirements with respect to suspicious transaction reporting,” it added.
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