Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction

According to the FATF's definition, TF is the financing of terrorist acts, and of terrorists and terrorist organizations.  In relation to TF, particular attention should be drawn to the provisions of the United Nations (Anti-Terrorism Measures) Ordinance (Chapter 575) ("UNATMO") which, among other things, criminalizes the provision or collection of property and making any property or financial (or related) services available to terrorists or terrorist associates.  Please refer to Chapter 8 of the Guideline on Compliance of Anti-Money Laundering and Counter-Terrorist Financing Requirements for Trust or Company Services Providers where the requirements under the relevant provisions in the UNATMO and other requirements in relation to TF are set out.

In May 2018, amendments to the UNATMO came into operation to further prohibit any person from dealing with specified terrorist property and property of a specified terrorist or terrorist associate under section 8A of the UNATMO, as well as the financing of the travel of a person between states for the purpose of perpetration, planning or preparation of, or participation in, terrorist acts or the provision or receiving of terrorist training under section 11L of the UNATMO.

In relation to PF, particular attention should be drawn to the provisions of the Weapons of Mass Destruction (Control of Provision of Services) Ordinance (Chapter 526) ("WMD(CPS)O"), and the United Nations Sanctions (Democratic People's Republic of Korea) Regulation (Chapter 537AE) and the United Nations Sanctions (Joint Comprehensive Plan of Action—Iran) Regulation (Chapter 537BV) made under the United Nations Sanctions Ordinance (Chapter 537) ("UNSO") which implement sanctions against Democratic People's Republic of Korea and Iran respectively.

Activities, transactions or relationships that are suspected to be related to weapons of mass destruction proliferators should be handled with great caution as it is an offence under section 4 of WMD(CPS)O to provide any service to another person where he believes or suspects, on a reasonable grounds, that those services may be connected to PF.  The provision of services covers a wide range of activities and includes the lending of money or other provision of financial assistance.