Page:Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (Cap. 615).pdf/139

Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance Schedule 2 Part 4 Part 4 Miscellaneous 22. Duties extended to branches and subsidiary undertakings outside Hong Kong

(1) A financial institution incorporated in Hong Kong must ensure that—
 * (a) its branches; and
 * (b) its subsidiary undertakings that carry on the same business as a financial institution in a place outside Hong Kong,

have procedures in place to ensure compliance with, to the extent permitted by the law of that place, requirements similar to those imposed under Parts 2 and 3 of this Schedule that are applicable to the financial institution.

(2) If the law of the place at which a branch or subsidiary undertaking of a financial institution carries on business does not permit the application of any procedures relating to any of the requirements referred to in subsection (1), the financial institution must—
 * (a) inform the relevant authority accordingly; and
 * (b) take additional measures to effectively mitigate the risk of money laundering and terrorist financing faced by the branch or subsidiary undertaking as a result of its inability to comply with the requirement.