Media Release: The Anti Money Laundering Network warns Hong Kong Bankers to be cautious of sudden withdrawals
Kuala Lumpur 2009 06 17 14:00 GMT
Release: Immediate
The Anti Money Laundering Network, the leading counter-money laundering strategist and risk management Group, has issued a warning to bankers in Hong Kong resulting from the latter today from the Hong Kong Monetary Authority to CEOs of banks.
Nigel Morris-Cotterill, Head, The Anti Money Laundering Network said "The HKMA has thrown down a challenge to Hong Kong's banks to clear the decks before the implementation of new international tax agreements later this year.
"But banks cannot unilaterally close accounts nor warn their clients of their suspicions because to do so may be considered tipping off - and that's a crime.
"The HKMA has told banks, in no uncertain terms, that they face both criminal and regulatory sanctions - including loss of licence - if they harbour assets that are hidden from Hong Kong or foreign tax authorities."
For bankers, the notice creates an additional risk.
Morris-Cotterill says "If customers suddenly liquidate positions and move funds outside Hong Kong, that may be an identifier of suspicion under Hong Kong's counter-money laundering laws.
"And if a bank allows that to happen and does not make a suspicious transaction report, then it may be held to have facilitated the further laundering of those funds."
Contact Info:
The Anti Money Laundering Network
www.antimoneylaundering.net
Group Response Centre: Kuala Lumpur, Malaysia
+6 03 2079 9152
Contact form at www.antimoneylaundering.net
Additional information regarding the HKMA notice is available at
