Regulatory Alerts2026-08-28
Added
Guidance on Risk-Based AML/CFT Controls for Politically Exposed Persons: Smart Tips on the Treatment of Politically Exposed Persons Version 2.0
Non-Hong Kong politically exposed persons require specific enhanced due diligence measures regardless of risk level, whereas Hong Kong or international organisation politically exposed persons are treated as regular customers unless a risk assessment reveals high money laundering or terrorist financing risk. Required measures include establishing the source of wealth and funds, obtaining senior management approval for the business relationship, and conducting enhanced ongoing monitoring including annual customer due diligence reviews. Former politically exposed persons are subject to a risk assessment to determine if enhanced due diligence remains necessary, and requirements also extend to family members and close associates based on a risk-based approach.