The Hong Kong Insurance Authority (HKIA) recently issued a Guideline on Anti-Money Laundering and Counter-Terrorist Financing (GN3) and a Guideline on Exercising Power to Impose Pecuniary Penalty (GN3A).
The GN3 consists of 10 chapters and is an updated version of the relevant guideline issued by the HKIA in July 2005. Both the GN3 and the GN3A apply to authorised insurers, reinsurers, appointed insurance agents and authorised insurance brokers carrying on or advising on long term business.
The HKIA made clear that the purposes of the GN3 are to provide a general background on the subjects of money laundering and terrorist financing, including a summary of the main provisions of the applicable anti-money laundering and counter-financing of terrorism legislation in Hong Kong and provide practical guidance to assist financial institutions and their senior management in designing and implementing their own policies, procedures and controls in the relevant operational areas, taking into consideration their special circumstances so as to meet the relevant anti-money laundering and counter-financing of terrorism statutory and regulatory requirements.
The GN3A sets out the factors the HKIA would consider in exercising her power to impose pecuniary penalty referred to in section 21(2)(c) of the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (Cap.615 of the Laws of Hong Kong).