The Hong Kong Securities and Futures Commission has updated its frequently asked questions on anti-money laundering and terrorist financing, listing 2 frequently asked questions and answers on virtual assets

The Hong Kong Securities Regulatory Commission has updated the Frequently Asked Questions (FAQs) on combating money laundering and terrorist financing, listing 2 frequently asked questions and answers on virtual assets, reminding financial institutions to pay attention to compliance when transferring virtual assets. The "Guidelines for Combating Money Laundering" stipulates that before transferring virtual assets involving no less than HK$8,000, the remittance institution must obtain and record the information of the remitter and the payee, and submit the relevant information to the collection institution securely. The guidelines will come into effect on January 1, 2024. The question set states that if a financial institution is unable to submit the required information to the collection agency immediately before the guidance takes effect, it should submit the required information as soon as practicable after the transfer of the virtual asset. The SFC also reminds that purely relying on a customer's own statement is not sufficient to assist a financial institution in ascertaining a customer's ownership or control over an account or uncustodial wallet. It is reiterated that reference should be made to the examples of confirmation methods set out in paragraph 12.10.6 of the AML Guidelines, namely the micropayment test and the message signature test.