The FATF has released its Follow-up Report and Technical Compliance Re-Rating for Hong Kong, China.
The report outlines the progress made in addressing the technical compliance deficiencies first identified in the 2019 Mutual Evaluation Report (MER) relating to the regulation and supervision of Designated Non-Financial Businesses and Professions (DNFBP). Subsequently, Hong Kong has been upgraded from “Partially Compliant” to “Largely Compliant” in respect of Recommendation 28.
Hong Kong has also made progress in implementing new requirements in respect of Recommendation 15, which had changed since the on-site visits of October and November 2018.
Firms with operations in or exposure to Hong Kong, China should read the FATF report to gain further insights into the state-level progress made in technical compliance.