Requests for Information from Overseas Tax Authorities

HONG KONG MONETARY AUTHORITY 香港 金 融 管 理 局 Banking Conduct Department RAT 1H FE Our Ref: B9/32C 28 May 2010 The Chief Executive All Authorized Institutions Dear Sir / Madam, Requests for Information from Overseas Tax Authorities It has come to our attention that some authorized institutions (“Als”) have received requests from overseas tax authorities for information regarding accounts held in Hong Kong by their customers who are resident in or otherwise subject to tax in the jurisdiction concerned. A request is usually based on the tax legislation of the jurisdiction concerned and may be addressed to the parent, branch, subsidiary or other affiliate of an Al operating in that jurisdiction, which then passes the request to the Al in Hong Kong. We would like to remind Als of the need to ensure that they fulfill their duty of confidentiality to their customers and comply with Hong Kong laws and other regulatory requirements when dealing with such requests. In particular, Als should ensure that they comply with the requirements of the Personal Data (Privacy) Ordinance (Cap. 486) (“PDPO”). Als should note that Data Protection Principle 3 in Schedule 1 of the PDPO provides that personal data shall not, without the prescribed consent of the data subject, be used for any purpose other than — (a) the purpose for which the data were to be used at the time of the collection of the data; or (b) a purpose directly related to the purpose referred to in paragraph (a). .,./2 55th Floor, Two International Finance Centre, 香港 中 環 金 融街8號 國 際 金 融 中 心 2 期55 樓 8 Finance Street, Central, Hong Kong 電話: (852) 2878 8100 傳真: (852) 2878 2100 Tel: (852) 2878 8100 Fax: (852) 2878 2100 電郵: Meena_Datwani@hkma.gov.hk E-mail: Meena_Datwani@hkma.gov.hk 網 址: www.hkma.gov.hk Website: www.hkma.gov.hk

Als should ensure that they obtain appropriate legal advice before deciding how to respond to requests for information from overseas tax authorities. Yours faithfully, Meena Datwani Executive Director (Banking Conduct)