Stewart McGlynnStewart McGlynnAntiAnti--Money LaunderingMoney LaunderingHong Kong Monetary AuthorityHong Kong Monetary Authority
Common AML DeficienciesCommon AML DeficienciesIdentified during OnIdentified during On--SiteSiteExaminationsExaminations
22
3
Our AdvantageOur Advantage
Reduced risk of serious crime and
terrorism
Better reputation as a good and safe place to do business
Contribution to global and national fair play
Recovery of proceeds of crime
4
Keep Up to Date Keep Up to Date ..
the NCCT process the NCCT process
no longer existsno longer exists
5
Public
Statement
Strategic
Deficiencies
Public
Statement
Counter
Measures
Improving Global Improving Global
ComplianceCompliance
Iran
Democratic Peoples
Republic of Korea
(DPRK)
Cuba
Bolivia
Ethiopia
Kenya
Myanmar
Nigeria
So Tom and Prncipe
Sri Lanka
Syria
Turkey
Algeria
Angola
Antigua and Barbuda
Argentina
Bangladesh
Brunei Darussalam
Cambodia
Ecuador
Honduras
Kyrgyzstan
Mongolia
Morocco
Namibia
Nepal
Nicaragua
Paraguay
Philippines
Sudan
Tajikistan
Turkmenistan
Trinidad and Tobago
Venezuela
Vietnam
Yemen
Zimbabwe
Jurisdiction not making sufficient progress Ghana Indonesia Pakistan
Tanzania Thailand
Source: FATF public statements on 28 October 2011Source: FATF public statements on 28 October 2011
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Give consideration to Give consideration to
offshore accountsoffshore accounts
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All local records maintained
Appropriate personnel
Screening
Onshore & offshore booked accounts
Ensure proper actions both on and
offshore
Expectation - Policy and procedures
Law Enforcement RequestsLaw Enforcement Requests
8
Know what the SFC alert Know what the SFC alert
list islist is
and use it!and use it!
9
consent is only a word consent is only a word
NOTNOT a risk a risk
assessmentassessment
10
Undue Reliance on Undue Reliance on ConsentConsent
Not a Clean Bill of Health
Not an indication that there is no risk
Appropriate review expected, irrespective of JFIU feedback
Take appropriate action to mitigate
Expectation of Audit Trail
Continued operation without above
= not acceptable
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What Risk?What Risk?
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Large Cash Large Cash
Deposits & Deposits &
WithdrawalsWithdrawals
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Cash Transaction RisksCash Transaction Risks
= Red Flag
Commensurate with Customer
Deposits and withdrawals
Outflow of cash can = high risk
Front-line staff
Monitoring of past transactions
Expectation KYC + Audit Trail
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Ensure your system is Ensure your system is
populated with populated with meaningful meaningful
informationinformation that accurately that accurately describes the customerdescribes the customer
.and his activities.and his activities
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Section 25A(1)Section 25A(1)
Where a person knows or Where a person knows or
suspectssuspects.he shall, as soon as it is .he shall, as soon as it is
reasonable for him to do so disclose that reasonable for him to do so disclose that
knowledge or suspicion,knowledge or suspicion,....
together with any matter on together with any matter on
which that knowledge or which that knowledge or
suspicion is basedsuspicion is based
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Our AML RegimeOur AML Regime
Reduced risk of serious crime and
terrorism
Better reputation as a good and safe place to do business
Contribution to global and national fair play
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Thank YouThank You
Stewart McGlynnStewart McGlynnTel. 2878 1095Tel. 2878 [email protected]@hkma.gov.hk