Regulatory Alerts2019-06-14
Added · Updated
Feedback From Thematic Review of AIs’ Application of AML/CFT Controls in the SME Segment
The Hong Kong Monetary Authority issued this circular to share key observations and good practices from a thematic review of how Authorized Institutions apply anti-money laundering and counter-terrorist financing controls when onboarding Small and Medium-sized Enterprises. The review found that while institutions generally apply a risk-based approach, there is room for improvement in ensuring Customer Due Diligence measures are proportionate to risk and that front-line staff receive adequate guidance to exercise appropriate discretion. The HKMA expects institutions to optimize their AML/CFT controls by adopting identified good practices, such as flexible documentation for start-ups and enhanced staff training, to better adhere to regulatory principles.