Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism

10 Jul 2020

(1) FATF Statement on High-Risk Jurisdictions subject to a Call for Action
The FATF advised its members to refer to the list of high-risk jurisdictions subject to a call for action adopted in February 2020, namely Iran and the Democratic People’s Republic of Korea, and that the FATF’s call for action on these high-risk jurisdictions remains in effect.

(2) FATF Statement on Jurisdictions under Increased Monitoring
The FATF issued an updated statement on the progress made by two of the jurisdictions under increased monitoring, namely Mongolia and Iceland in addressing the identified strategic deficiencies in their regimes to counter money laundering, terrorist financing and proliferation financing.

(3) Outcomes from the FATF Virtual Plenary, 24 June 2020
The FATF also published various other outcomes of its recent Virtual Plenary which may be of interest to LCs and AEs. For example, the publication of 12-Month Review of the Revised FATF Standards on Virtual Assets/VASPs report and FATF Report to the G20 on so-called ‘Stablecoins’ on the FATF website.

Summary: 

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, welcomed the passage of the Limited Partnership Fund Bill by the Legislative Council on July 9.The new Ordinance establishes a limited partnership fund regime which enables funds to be registered in the form of limited partnerships in Hong Kong. The new Ordinance will come into operation on August 31, 2020. 
The limited partnership fund regime is an opt-in registration scheme administered by the Companies Registry. Limited partnership is a common constitution form for private funds such as private equity funds. In a limited partnership, the general partner (i.e. operating person) with unlimited liability in respect of the debts and liabilities of the fund and the limited partner(s), who are essentially investors, with limited liability will have freedom of contract in respect of the operation of the partnership.

Read More: https://www.sfc.hk/edistributionWeb/gateway/EN/circular/aml/openFile?refNo=20EC49