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Proposed answer for clients' question on why executing due diligence on them and asking for so many information and documents:

Cap. 615 Anti-Money Laundering and Counter-Terrorist Financing Ordinance

Part 2 Requirements Relating to Customer Due Diligence and Record-keeping

Section 5A. Schedule 2 has effect in relation to DNFBPs (指定非金融業人士)

  • (3) An AML/CTF requirement that applies to a DNFBP who is an accounting professional or a legal professional only applies, when, by way of business, the accounting professional or the legal professional, in Hong Kong, prepares for or carries out for a client a transaction concerning one or more of the following —
    • (a), (b), (c)... etc...
    • (g) a service specified in the definition of trust or company service in section 1 of Part 1 of Schedule 1.

Schedule 2 Requirements Relating to Customer Due Diligence and Record-keeping

  • Part 1 Interpretation
  • Part 2 Customer Due Diligence Requirements
  • Part 3 Record-keeping Requirements
  • Part 4 Miscellaneous

Disciplinary if non-compliance:

Other key legislations relating to AML / CTF:

  • Cap. 405 Drug Trafficking (Recovery of Proceeds) Ordinance
  • Cap. 455 Organized and Serious Crimes Ordinance
  • Cap. 537 United Nations Sanctions Ordinance
  • Cap. 575 United Nations (Anti-Terrorism Measures) Ordinance
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4 Answers

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Different banks have different guidance, we only provide a overall view, and is on "Possible" and "non-exhaustive" only. As Company Secretary license requirement (TCSP) is similar with bank's requirement, also can use this list to consider reject a client or not.

  • Sale of art and antiquarian / Activities connected with precious metals and diamonds / Jewel, Gem, Precious metal dealers
  • Activities connected with weapons
  • Casinos / sports clubs
  • Sale of drugs / Online Pharmaceuticals (prescription drugs)
  • securities related
  • Shipping industry
  • Charities
  • Financial Services (deposit taking, payment processing)
  • Gambling
  • Virtual currency / cryptocurrency
  • Pass-through transactions and Payable-through accounts (PTA)
  • Cash Based Investment Businesses / Investment from several individuals (third party) without proper approval
  • On-line gaming operations
  • Any business relating to pornography or prostitution
  • Trade in wildlife or wildlife products regulated under CITES
  • Abusing confidential or material, non-public information
  • Diamond trading without Kimberley Certification
  • Quarries, mining, or processing of metal ores or coal / Production or trade in radioactive materials
  • Cultural objects like sculptures, statues, antiques, collectors items, archeological pieces especially from Iraq
  • Online Trading/Online Marketing and E-Commerce
  • Cash Pooling Structures
  • Online Universities
  • Scams (Pyramid and Ponzi schemes, high yield investments, boiler room scams)
  • Activities involving bank guarantees
  • Activities involving advance fees
  • Traders in Counterfeit products of any nature

Some banks have special requirement on bank account opening (as a TCSP license holder, you may consider ask for this also), like:

  • BRC needs to be apostiled
  • detailed business plan
  • leasing contract
  • has existing business in CIS countries
  • no e-bills
  • other bank's reference letter
  • attested proof of address
  • send original FATCA
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Global terrorism search resource (and resource only): https://www.start.umd.edu/gtd/ (not covering PEP search)

PEP and sanction search resource (and resource only): https://namescan.io/ (first one hundred search free)

Sanction check (links from [HKICPA's Guidelines on Anti-Money Laundering and Counter-Terrorist Financing for Professional Accountants])

Other supplement background checking sites:

filing STR to  JFIU: 

  • [Reporting Form in word] by JFIU
  • Question: who should sign the STR?
    • Answer: shall be compliance officer or can also sign with money laundering reporting officer together.
  • the Joint Financial Intelligence Unit (JFIU) web site: https://www.jfiu.gov.hk/en/
  • Telephone: (852) 2866 3366
  • Fax: (852) 2529 4013
  • email: jfiu@police.gov.hk
  • Post address: GPO Box 6555 Hong Kong

Minimum requirements for Practising CPA with only providing services other than those specified in paragraphs 600.2.1 or 600.2.2 (i.e., TCSP license inactive) [in accordance with Q&A on face-to-face 2019 Quality Assurance Seminar]:

[below is personal reference only]

AML company policy (Chinese version) sample [Download Link] (for reference only, may not enough in actual practise)

AML company policy (Chinese version) sample 2 [Download Link] (for reference only, may not enough in actual practise)

KYC form [Download Link] (for reference only, may not enough in actual practise)

[The download is only for 3 minutes' self-reference reading only. Please permanently delete in 3 minutes after downloand.]

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AML resource:

[HKICPA's FAQ] [Highlight: Even CPA firm co-work with com sec holding TCSP license and will not execute any specific transactions himself , the CPA firm still need to appoint AML officer.]

[HKICPA's AML page]

[HKICPA's Guidelines on Anti-Money Laundering and Counter-Terrorist Financing for Professional Accountants]

Extracted from guidance (suspicious transaction reporting be Mandatory event no "specified transactions"):

[HKICPA's Anti-money laundering procedures manual for accountants]

[CR's TCSP three guidelines]:

[FATF Guidance on the Risk-Based Approach for Trust and Company Service Providers (TCSPs)]

CR and HKICPA TCSP guidance comparison:

TCSP prosecution and disciplinary:

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TCSP site visit checklist:

(Note 1: point 3's transaction carried out should be transaction between TCSP license holder and the client)

(Noe 2: should have a completed records of all NNC1 and NAR1 filed to CR)

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