Money Laundering: Hong Kong
The question
To ask the Chancellor of the Exchequer, whether the Government intends to issue guidance under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 requiring enhanced due diligence for Hong Kong-linked transactions.
Answered by Treasury
Under the Money Laundering Regulations (MLRs), regulated firms and businesses must establish policies, controls and procedures to mitigate the risks of money laundering and terrorist financing, considering relevant risk factors relating to customers, transactions and the countries and geographical areas in which they operate. Regulated firms and businesses take a risk-based approach to these obligations, and must apply enhanced due diligence (EDD) measures when a customer or transaction is identified as high risk.
The MLRs require EDD in certain high risk circumstances, including for business relationships or transactions with countries identified as high risk countries subject to a call to action by the Financial Action Task Force. Hong Kong is not currently on that list.
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