Regulatory Compliance
& Security
We are committed to maintaining the highest standards of legal and regulatory compliance. From strict Anti-Money Laundering (AML) protocols to rigorous supplier vetting, we ensure your global supply chain operations are secure, transparent, and fully compliant with Hong Kong and international laws.
We Take Compliance Seriously
ARC’s services in Hong Kong are provided by ARC LIMITED, Hong Kong company number 3220299.
Our actions are guided by our corporate principle: ‘We comply with applicable laws and internal guidelines’. This means having a strong compliance management system in place to prevent non-compliance and implement measures to mitigate potential risks.
AML & CTF Framework
Hong Kong introduced its anti-money laundering and counter-terrorist financing framework on 1st March 2018. The law regulates the rights and obligations of legal persons and natural persons in preventing and detecting money laundering and terrorist financing.
The law also contains provisions regarding customer screening, identification, and verification of customers, and the reporting of unusual transactions.
Scope
The ‘Hong Kong – AML KYC Regulations’ report may be used as a reference to highlight information from Hong Kong’s ‘Anti-Money Laundering and Counter-Terrorist Financing Ordinance’.
Under the guidelines from the Hong Kong Monetary Authority (HKMA), Joint Financial Intelligence Unit (JFIU), and the aforementioned act(s), this document highlights the necessary requirements for AML and KYC procedures, in particular, Identity Verification required in Hong Kong. These requirements are approximated from relevant information/laws/directives from the aforementioned document.
Definitions
Client:
ARC’s customer is referred to as the Client.
Customer:
The client’s customer whose subject to the KYC – AML checks.
End-user:
The client’s customer is referred to as end-user but from ARC’s perspective.
Document Verification:
The process of verifying the authenticity of a government-issued identity document.
Identity Verification:
The process of verifying the identity of the client’s customers.
Proof of Identity:
Any government-issued identity document that can be used to identify an individual (natural person).
EDD:
Enhanced Due Diligence (EDD) is a process that executes a greater level of scrutiny related to the potential business relationships.
Third-Party Diligence:
Outsourcing of the due diligence process to an external party by the Client who is originally responsible for carrying out due diligence activities.
PEP:
Politically Exposed Person (PEP) is a person with a higher risk for potential involvement in bribery/corruption.
Due Diligence:
Refers to the measures taken to mitigate risk before entering into an agreement or carrying out a financial transaction with another party.