At a glance: Circular on AML/CFT measures and controls inspection findings

September 2018

The Securities and Futures Commission of Hong Kong released a circular on 31 August 2018 setting out a number of deficiencies identified from a review of licensed corporations’ (LCs) in meeting the expected regulatory standards for Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) measures and controls.

The SFC has identified deficiencies in a firm’s AML/CFT measures and controls in the following categories that LCs should avoid:

  • Institutional risk assessment (IRA)
  • Customer risk assessment (CRA)
  • Initial and ongoing customer due diligence (CDD)
  • Sanctions screening
  • Suspicious transaction monitoring and reporting

This ‘At a glance’ discusses these deficiencies and identifies the next steps for LCs.

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Emily Lam

Partner, PwC Hong Kong

Tel: +[852] 2289 1247

Ho Kee Fu

Partner, PwC Hong Kong

Tel: +[852] 2289 2721

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