Hong Kong: Adopted Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022

On 7 December 2022, the Hong Kong legislative chamber adopted the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022. The Bill amends the current Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) and ensures alignment with the international standards set by the Financial Action Task Force (FATF). The Bill requires virtual asset service providers (VASPs) to be registered by the Securities and Futures Commission. Registration is granted if the applicant is a locally incorporated company or a company registered under the Companies Ordinance, solvency is satisfactory, and the presence of two "responsible officers" is proven. Finally, licensed VASPs are required to perform customer due diligence and keep records of customer data and transactions. The new licensing regime for VASPs will take effect on 1 June 2023.