In Summer 2021, the Financial Services and the Treasury Bureau (FSTB) published the conclusions to its consultation on proposals to enhance anti-money laundering and counter-terrorist financing (AML/CFT) regulation in Hong Kong via amendments to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). One of the goals of the amendments is compliance with the FATF recommendations related to VASPs.
The final proposal is set to be introduced to the Legislative Council in 2021; however, an exact date has yet to be set. If passed, Hong Kong's traditional AML obligations for wire transfers will be extended to all VASPs operating in Hong Kong.
Scope of the travel rule
A new regulated activity (Regulated VA Activity) will cover the operation of a trading platform (VA Exchange) that:
is operated for the purpose of allowing an offer or invitation to be made to buy or sell any virtual assets (VA) in exchange for any money or any VA; and
comes into custody, control, power or possession of, or over, any money or any VA at any point in time during its course of business.
This will not include peer-to-peer trading platforms, to the extent that the actual transaction is conducted outside the platform and the platform is not involved in the underlying transaction by coming into possession of any money or any virtual asset at any point in time.
Current regulations: USD 8000
Information to be exchanged
If the amount transferred is equal to or above $8,000 :
Originator's account number or, in the absence of such an account, a unique reference number;
Originator's address or, customer identification number or identification document number or date and place of birth;
Beneficiary's account number, in the absence of such an account, a unique reference number.
If the amount transferred is below $8,000:
Originator's account number or, in the absence of such an account, a unique reference;
Beneficiary's account number or, in the absence of such an account, a unique reference number.
When do you need to comply?
AMLO amendments are planned to be introduced into the Legislative Council in the 2021-22 legislative session. There will then be a 180-day transitional period upon commencement of the regime to facilitate application by interested parties.