The AML Network warns Hong Kong Bankers to be cautious of sudden withdrawals

June 18, 2009 - PRLog -- 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
www.chiefofficers.net
www.bankinginsurancesecurities.com

Notes for editors:
The Anti Money Laundering Network is the only group of companies that specialising exclusively in Anti Money Laundering and Counter Terrorist Financing consultancy, training and related comprehensive services and products since 1994. We have representation in Asia, Europe and America

The Society of Anti Money Laundering Professionals is part of the Network.  It is a global society for senior managers and compliance officers, dedicated to raising standards in combating money laundering and  terrorist financing.

This message originates from a company within The Anti Money Laundering Network at http://www.antimoneylaundering.net/

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The Anti Money Laundering Network is the only group of companies that
specialising exclusively in Anti Money Laundering and Counter Terrorist
Financing consultancy, training and related comprehensive services and
products since 1994.