Hong Kong banks to disclose related property of clients who breach security law By Reuters

By Kane Wu

HONG KONG (Reuters) – Banks in Hong Kong are suggested to reveal associated property of purchasers who’re present in breach of the town’s nationwide safety legislation, in keeping with the most recent pointers from its banking affiliation.

The recommendation was launched in an Oct. 22 replace of the Hong Kong Affiliation of Banks’ (HKAB) steadily requested questions in relation to anti-money laundering and counter-financing terrorism, which was printed on the web site of the Hong Kong Financial Authority (HKMA).

Banks ought to disclose property held by any shopper who’s arrested or charged for an offence endangering nationwide safety or after they have data or suspicion {that a} property is “offence associated property” after receiving data from legislation enforcement businesses, per the clause.

HKMA and the HKAB didn’t instantly reply to a Reuters request for remark.

China imposed nationwide safety laws in Hong Kong on June 30 final 12 months, making something Beijing regards as subversion, secession, terrorism or colluding with international forces punishable by as much as life in jail.

Three months later, the banking affiliation added 5 clauses to the FAQs concerning anti-money laundering and counter-financing terrorism, advising banks of their reporting necessities underneath the legislation, how they need to deal with legislation enforcement requests and pointers concerning group-wide data sharing.

Transactions suspected to be linked to the legislation must be handled the identical as transactions suspected to be cash laundering or financing terrorism, in keeping with the clauses on the time.

The FAQs usually are not official pointers however apply to each Hong Kong and worldwide banks.