On 11 Jul 2024, the HKMA notified Authorized Institutions of the FATF’s updated designations, maintaining Iran, DPRK, and Myanmar under enhanced due diligence requirements, and confirming Myanmar’s continued inclusion on the 'Call for Action' list. The HKMA also reported FATF’s Plenary outcomes, including finalised virtual assets guidance and a decision to pursue further stakeholder consultation on payment transparency amendments before finalising Recommendation 16.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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FATF Jurisdictions Designations
On 11 Jul 2024, the Hong Kong Monetary Authority (HKMA) issued a circular updating Authorized Institutions (AIs) on the Financial Action Task Force (FATF) statements regarding strategic deficiencies in anti-money laundering and counter-terrorist financing (AML/CFT) regimes. The FATF has maintained Iran and the Democratic People’s Republic of Korea (DPRK) under the 'High-Risk Jurisdictions subject to a Call for Action,' requiring AIs to continue applying enhanced due diligence measures as specified in the HKMA’s March 2020 circular. Myanmar remains on the 'Call for Action' list until completion of its action plan, necessitating proportionate enhanced due diligence for business relationships and transactions involving Myanmar, consistent with the HKMA’s May 2023 Guideline on AML/CFT. Additionally, the FATF updated its 'Jurisdictions under Increased Monitoring' list, with the statement available on the FATF website.
FATF Plenary Outcomes
On 11 Jul 2024, the HKMA highlighted outcomes from the FATF Plenary meeting (26–28 June 2024), including the finalisation of the fifth targeted update on virtual assets and virtual asset service providers, requiring AML/CFT measures. The FATF also announced it will continue monitoring market trends for potential further action. Regarding Recommendation 16 on payment transparency, the FATF agreed to undertake further stakeholder dialogue before finalising amendments due to the complexity of requirements and potential impact on payment systems, with the HKMA confirming ongoing participation in discussions and commitment to updating the industry.
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