Page:Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (Cap. 615).pdf/129

Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance Schedule 2 Part 2—Division 2 remittance transaction (匯款交易) means a transaction for sending, or arranging for the sending of, money to a place outside Hong Kong.

14. Special requirements for correspondent banking relationships

(1) An authorized institution must, before establishing a correspondent banking relationship with an institution located in a place outside Hong Kong that carries on a business similar to that carried on by an authorized institution (referred to in this section as proposed respondent bank)—
 * (a) collect sufficient information about the proposed respondent bank to enable it to understand fully the nature of the proposed respondent bank’s business;
 * (b) determine from publicly available information the reputation of the proposed respondent bank and the quality of its supervision by authorities in that place that perform functions similar to those of the Monetary Authority; and
 * (c) assess the anti-money laundering and anti-terrorist financing controls of the proposed respondent bank.

(2) An authorized institution must not establish a correspondent banking relationship with a proposed respondent bank unless—
 * (a) it has obtained approval from its senior management;
 * (b) having complied with subsection (1), it is satisfied that the anti-money laundering and anti-terrorist financing controls of the proposed respondent bank are adequate and effective;
 * (c) it has documented its responsibilities and the responsibilities of the proposed respondent bank; and