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HKMA warns stored value licensees of obligations to scan for sanctions

FCRO Subsection: 
Editorial Staff

In a notice issued by the Hong Kong Monetary Authority at or about 17:30 today, Hong Kong time, Carmen Chu, Executive Director (Enforcement and Anti Money Laundering) says "The adequacy of sanctions screening systems and controls is a supervisory priority for the HKMA, especially in the light of recent geopolitical developments." The notice is serious reminder to stored value facilities licensees that even though, mostly, the amounts involved are small, the regulatory requirements are not significantly diminished in some important areas.


" To assist SVF licensees in understanding and optimising the performance of their screening systems, as well as preparing for the upcoming review, we are sharing key observations and good practices from a similar thematic review we have recently conducted in relation to the financial sanctions screening systems of
Authorised Institutions (AIs). While sanctions compliance policies and risk appetite may differ between SVF licensees and AIs, dependent on the particular business model, SVF licensees are encouraged to review the good practices provided."

The full notice is at http://www.hkma.gov.hk/media/e...