17 Jun AML Regulations and Regulators
The Insurance Authority (IA) of Hong Kong and the Joint Financial Intelligence Unit (JFIU) provide guidance to authorized insurers, reinsurers, appointed insurance agents, and insurance brokers. These individuals are expected to understand and comply with the provisions of the applicable anti-money laundering and counter-financing of terrorism (AML/CFT) laws in Hong Kong, including:
- Section 7 of the Anti-Money Laundering and Counter Terrorist Financing (Financial Institutions) Ordinance (AMLO), Cap. 615; and
- Section 4A of the Insurance Companies Ordinance (ICO), Cap. 41.
The AMLO imposes customer due diligence and record-keeping requirements on insurance companies and other financial institutions, and the ICO gives the Insurance Authority the power to regulate the insurance industry in Hong Kong with respect to AML policies.
- Criminal violations of the AMLO carry penalties of 2 to 7 years in prison and fines of up to $1 million.*
- Penalties against the insurance company can include fines of up to $10 million or 3 times the amount of profit gained or costs avoided, whichever is greater.
* For purposes of this training, all monetary amounts are referenced in Hong Kong dollars.