There has been increased scrutiny of anti-money laundering/counter terrorist financing controls, especially in international financial centres. In Hong Kong, non-compliance with the customer due diligence and on-going monitoring requirements in the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) is potentially a criminal offence and hence AML/CTF matters remain a focus for financial institutions. Under the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, the licensing regime for Virtual Asset service providers (“VASP”) as well as other amendments on AML/CTF requirements, will take effect on June 1, 2023. This expansion of the AML regime will increase Hong Kong’s influence as a virtual asset hub, with a balance between innovation and investor protection.
