Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions)
Ordinance
Schedule 2
A913
Part 2—Division 3
Ord. No. 15 of 2011
17. Correspondent banking relationships with shell banks
(1) An authorized institution must not establish or continue a correspondent banking relationship with a corporation that—
- (a) is incorporated in a place outside Hong Kong;
- (b) is authorized to carry on banking business in that place;
- (c) does not have a physical presence in that place; and
- (d) is not an affiliate of a corporation that—
- (i) is incorporated in a particular jurisdiction;
- (ii) is authorized to carry on banking business in that jurisdiction; and
- (iii) has a physical presence in that jurisdiction.
(2) For the purposes of subsection (1)(c) and (d)(iii), a corporation has a physical presence in a place or jurisdiction if—
- (a) the corporation carries on banking business at any premises in that place or jurisdiction; and
- (b) at least one full-time employee of the corporation performs banking-related duties at those premises.
(3) For the purposes of subsection (1)(d), a corporation is an affiliate of another corporation if—
- (a) the corporation is a subsidiary of the other corporation; or
- (b) at least one individual who is a controller of the corporation is at the same time a controller of the other corporation.
(4) In this section—
associate (相關者), in relation to a person entitled to exercise, or control the exercise of, voting rights in relation to, or
