CPD/RME Elective Course: Regulatory and Compliance Updates in Anti-Money Laundering for Lawyers

This course will cover the followings:

• Discussion about the AML Risks in the Legal Industry

1. Key Money Laundering Risks in the Legal Industry
2. Service Risk
3. Client Risk
4. Country Risk
5. Transaction Risk
6. Delivery Channel Risk
7. Examples where there is a higher AML Risk

• Latest domestic and international AML/CTF developments

1. Overview of the amendments to the Anti-money Laundering and Counter Terrorist Financing Ordinance (Cap. 615) (“AMLO”)
2. Key updates to the Practice Direction P (“PDP”) by the Law Society of Hong Kong in view of the new amendments to the AMLO
3. Further Guidance on the definition of Politically exposed persons (“PEPs”), in particular, Non-Hong Kong PEPs
4. New Categories of PEP - Hong Kong PEPs and International Organisation PEPs
5. Requirement of Enhanced Due Diligence for PEPs
6. Treatment of Former PEPs
7. New definition of “beneficial owner” in relation to a trust
8. Name Screening Requirements
9. New Requirement on a Firm-wide Risk Assessment
10. Additional Guidance regarding the Client Risk Assessment as part of the CDD Process
11. Additional Guidance regarding the Use of Documents and Information to identify and verify a Beneficial Owner

• Discussion on Client Due Diligence, Risk Assessment and Record Keeping Requirements under AMLO and PDP

1. Best Recommended Steps of Client Due Diligence
2. Client Identification and Verification
3. Simplified Due Diligence (SDD)
4. Enhanced Due Diligence (“EDD”)
5. Client Risk Assessment
6. Record Keeping Requirement

• Discussion on the typical AML/CFT process of (i) onboarding a new client and (ii) ongoing monitoring of an existing client
• Suspicious Transaction Reporting

1. Public-Private Partnership
2. Common Types of STRs Filed by Legal Professionals in Hong Kong
3. Recommended Approach to identify Suspicious Transaction by the JFIU - The “SAFE” Approach
4. When to submit an STR?
5. How to submit an STR?
6. What to report in an STR?
7. Guidance on making a report to JFIU

• Case Study - HKSAR v Wu Wing Kit and Another [2017] HKCU 3073
• Questions and Answers