Terrorist asset-freezing bill passes first reading

The Legislative Assembly unanimously approved the first reading of the bill that proposes the establishment of a counter-terrorist asset freezing regime in the Special Administrative Region yesterday. The regime aims to plug the city’s legal vacuum of financial sanctions for terrorist activities.
According to Secretary for Administration and Justice Sonia Chan Hoi Fan, the city lacks a legal regime to execute anti-terrorist asset freezing designated by the United Nations Security Nation as indicated in a mutual assessment report conducted by the Asia/Pacific Group on Money Laundering (APG) and the Group of International Finance Centre Supervisors (GIFCS) in 2007.
“It is necessary for the MSAR Government to plug this legal hole through legislation of an asset freezing scheme in order to fulfil the government’s international obligations and to cope with the [next] assessment report [this year],” the Secretary told legislators when introducing the bill yesterday.
The draft bill proposes the local government immediately freeze assets owned by terrorist groups or individuals in the territory upon the designation of the UN Security Council under the regime.
In addition, it allows the authorities to list designated individuals or entities that are believed to finance terrorism.
The proposal also suggests empowering the Chief Executive to designate persons or entities found committing financial terrorist acts and freezing their assets held in the Special Administrative Region. Such a designation would be effective for two years, whilst the top official could extend the term if necessary.
For any act of asset-freezing for designated persons or entities, the Chief Executive would need to publicise his dispatches in the city’s Official Gazette, the bill regulates.
Cash declaration regime on the way
Nevertheless, directly elected legislator José Coutinho doubted whether the MSAR Government could enhance its supervision and suppression of financial terrorism in the city by only such a bill. Mr. Coutinho was the only legislator that made a statement during yesterday’s discussion on the proposed law.
“In fact, the 2007 report also indicated the city’s lacks of cash declaration regime and proper equipment to supervise local imports and exports. How can we improve other points indicated by the report?” the legislator queried.
The director of the Financial Intelligence Office, Deborah Ng Man Seong, told the legislator that the government is planning to conduct a cash declaration scheme at border checkpoints in order to combat financial crimes in the territory.
“Since the report released in 2007, a cross-department working group has conducted a number of policy studies and research. For example, we did a study on whether we should establish a cash declaration scheme at border checkpoints… The establishment of the scheme would require amendments to local laws. But we are working on it, hoping we can carry out [the declaration regime] soon,” the Office head claimed.
She added that the city’s Customs have been conducting random checks on the amount of cash individuals bring into the territory. “If [Customs officers] find these individuals suspicious, they would report to the Judiciary Police and our Office. Meanwhile, via our data base, we will check whether these individuals are related to any financial crimes,” the official said.