In an effort to enhance Hong Kong’s regulatory regime for combating money
laundering and terrorist financing, a new licensing regime for trust or company
service providers (TCSPs) and new requirements on the keeping of Significant
Controllers Registers by companies took effect today (March 1, 2018).
The new licensing regime for TCSPs has been introduced under the
Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615)
to require TCSPs to apply for a licence from the Registrar of Companies by June
28, 2018, the end of a four-month transition period.
Any person who carries on a trust or company service business in Hong Kong
without a licence commits an offence. TCSP licensees are also required to
comply with the statutory customer due diligence and record-keeping
requirements.
In addition, with effect from today, all Hong Kong companies (except listed
companies) are required to ascertain and maintain up-to-date beneficial
ownership information by way of keeping a Significant Controllers
Register. The Register should be open for inspection by law enforcement
officers upon demand.
“The two new regimes are in line with international requirements as
promulgated by the Financial Action Task Force (FATF). The initiatives will
safeguard the integrity of Hong Kong as an international financial centre, and
add to our credibility as a trusted and competitive place for doing business,” the
Registrar of Companies, Ms Ada Chung, said.
The FATF is an inter-governmental body that sets international standards on
combating money laundering and terrorist financing.