Enhanced Competency Framework on Anti-Money Laundering and Counter-Financing of Terrorism

Our Ref: B9/166C 22 March 2018 The Chief Executive All Authorized Institutions Dear Sir/Madam, Enhanced Competency Framework on Anti-Money Laundering and Counter-Financing of Terrorism I am writing to announce the launch of the Professional Level of the Enhanced Competency Framework on Anti-Money Laundering and Counter-Financing of Terrorism (ECF-AML/CFT) on 3 April 2018. The ECF-AML/CFT sets out the competency standards for AML/CFT practitioners in the Hong Kong banking industry. Further to the launch of the Core Level in December 2016 targeting the entry-level staff, the HKMA in collaboration with the banking sector has developed the Professional Level for more experienced practitioners. We have updated the Guide to the ECF-AML/CFT, which provides details of the application of this framework. Updates are shown in blue in the attached Guide. As the Supervisory Policy Manual module CG-6 “Competence and Ethnical Behaviour” emphasises the importance of ensuring continuing competence of staff members, AIs are encouraged to adopt the ECF-AML/CFT as a benchmark for enhancing the level of professional competence of banking practitioners responsible for AML/CFT compliance roles. Apart from supporting their staff to attend training and examination that meet the ECF benchmark, AIs are also advised to keep records of the relevant training and qualification of their staff and to provide them with necessary assistance in relation to applications for grandfathering, exemption and certification, and fulfilment of on-going continuing professional development training under the ECF-AML/CFT. In its supervisory process, the HKMA will take into account the progress of

• 2 ­ implementation of the ECF-AML/CFT by AIs and AIs’ effort in enhancing staff competence and on-going development. The Hong Kong Institute of Bankers (HKIB) is the administrator of the ECF-AML/CFT, whose major roles in this respect include administering the competency programme and examinations, handling certification, exemption and grandfathering applications and maintaining a public register of qualified certification holders. AIs may direct any enquiries regarding exemption, grandfathering, training and other related arrangements to Dr Wai-hung Yeung of HKIB on 2153 7886 or 2153 7800. In the meantime, if you have any enquiries relating to this circular, please contact Mr Raymond Tsai on 2878 1060 or Miss Rita Kong on 2878 8303. Yours faithfully, Arthur Yuen Deputy Chief Executive Encl cc: FSTB (Attn: Ms Eureka Cheung) HKIB (Attn: Ms Carrie Leung)