SuspiciousTransactionReporting-HongKongMonetaryAuthority.ppt

Suspicious Transaction Reports for banking sector John TSE Chief Inspector of Police Deputy Head of Joint Financial Intelligence Unit John TSE, Chief Inspector of Hong Kong Police Force Office Tel: 2860 3402 * 聯 合 財 富 情 報 組 Joint Financial Intelligence Unit Contents Part 1 – Overview of JFIU Obligations to file STR Part 2 – Updated STR Statistics Part 3 – ‘SAFE’ Approach (Case Examples) Part 4 – Crime Report Vs STR (Case Example) Part 5 – E-Reporting via STREAMS Vs Manual Reporting Established in 1989 (when FATF established) 40+ 9 Rs - R.26 – Establish a FIU Jointly operated by Police and CE Housed in Police Headquarters Manpower ↑from 29 to 44 JFIU’s functions Primarily receive, analyze and disseminate STR to law enforcement agencies Contact points Outreach Feedback Joint Financial Intelligence Unit Guideline on Prevention of Money Laundering (issued by HKMA on 2000) If an AI has a suspicion of Money Laundering activity regarding a transaction of whatever amount, it should report the suspicious transaction to JFIU. Regulatory obligation to make STR S.7, S.8 S.25 S.25 ML / TF Offence S.12(5) S.26 S.26 Confidentiality S.12(3) S.25A(3) S.25A(3) - Civil L S.12(2) S.25A(2) S.25A(2) - Criminal L Exemption S.12(1) S.25A(1) S.25A(1) STR Cap.575 Cap.455 Cap.405 Laws of HK Legal obligation to make reports and relevant ML laws s.25A(1) of DTROP / OSCO , s.12 of UNATMO Any person who knows or suspects any property represents the proceeds of crime or terrorist property shall make a report to an authorized officer. Legal obligation to make reports Statutory Defence to ML/TF s.25A(2) DTROP/OSCO, s.12(2) UNATMO If a person deals with property STR relates to that act, that person has a defence to ML/TF, provided:- (i) STR made before act act done with the consent of an authorized officer; or (ii) STR made - after the act - on his own initiative - as soon as reasonably practicable Part 2 – Updated STR figures No. of STR STR Figures by S