HONG KONG – 7 December 2022 – HKmediaEx welcomes the passage of the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022 by the Legislative Council on 7 December 2022, which reinforces Hong Kong's status as an international financial centre by enhancing Hong Kong's regulatory regime for combating money laundering and terrorist financing and by formulating a comprehensive and balanced regulatory framework for virtual asset (VA) activities to protect investors.
Under the amended Anti-Money Laundering and Counter-Terrorist Financing Ordinance, any person who engages in virtual asset exchange business is required to apply for a licence from the Securities and Futures Commission (SFC). The relevant persons must satisfy the fit and proper test and comply with the anti-money laundering and counter-terrorist financing (AML/CTF) requirements under the Ordinance (including requirements on customer due diligence (CDD) and record keeping), as well as other regulatory requirements on investor protection (such as safe custody of client assets, financial soundness and avoiding conflicts of interest). In addition, licensed VA exchanges and their wholly owned subsidiaries need to regularly submit audited accounts and financial information to the SFC. The SFC is also empowered to enter business premises for conducting inspections and investigations when necessary. The SFC will carry out a further consultation on the detailed regulatory requirements of the regime.
The Secretary for Financial Services and the Treasury Christopher Hui: "The amended Ordinance establishes an effective AML/CTF regulatory regime and fulfils the relevant international obligations. This in turn strengthens Hong Kong's status as an international financial center. For VA exchanges, a comprehensive and balanced regulatory framework can protect investors and promote responsible and sustainable industry development."
The amended Ordinance will come into effect in phases in the second quarter of 2023 to provide industries concerned with sufficient time to prepare for the new regulatory requirements. The amended Ordinance will take effect on April 1, 2023, and the licensing regime for VA service providers as well as other amendments on AML/CTF requirements, will take effect on June 1, 2023. Transitional periods will be provided under the new regimes to give industries concerned sufficient time to apply for a license or undergo registration in accordance with the regulatory regimes.
HKmediaEx Founder and CEO Lewis Wan: “The road is obstacle-packed and long, but one will get through if one keeps walking along. With the passage of the bill, Hong Kong leads the way in virtual asset regulation globally and readies itself for a better age. As we all know, the government is currently building eight centers to support Hong Kong’s long- term growth, we believe GLOBAL VIRTUAL ASSET TRADING CENTER may be the ninth.”
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