The latest issue of Hong Kong’s Money Laundering & Terrorist Financing Risk Assessment Report was published today.

It examines the money laundering and terrorist financing threats and vulnerabilities facing various sectors in Hong Kong and the city as a whole according to the requirements of the Financial Action Task Force, an inter-governmental body that sets international standards on combating such crimes.

The latest report also for the first time assesses the risk of proliferation financing faced by Hong Kong.

The Government said as an international financial centre, Hong Kong attaches great importance to safeguarding the integrity of its financial systems, adding that the city received positive recognition of its anti-money laundering and counter-terrorist financing regime from the task force in 2019.

It said the risk assessment can help it formulate informed policies to keep strengthening its work in anti-money laundering and counter-terrorist financing.

To address the risks identified, the Government will focus on enhancing the legal and regulatory framework, strengthening risk-based supervision and partnerships, stepping up outreach and awareness-raising, monitoring new and emerging risks, as well as strengthening law enforcement efforts and intelligence gathering capability.

In particular, the Government will introduce a proposal to the Legislative Council to amend the Anti-Money Laundering & Counter-Terrorist Financing Ordinance in order to introduce a licensing regime for virtual asset service providers and a registration regime for dealers in precious metals and stones.

The proposed legislative amendment aims to mitigate the risks of the sectors and protect investors.

The Government said it will continue to monitor and respond to the risks with vigilance amidst the evolving international security landscape.