What are the penalties for facilitating Money Laundering or Terrorist Financing?

DTRPO and OSCO

Section 25A(1) Maximum 3 months’ imprisonment and a fine of HK$50,000.

Failure to disclose
A duty is imposed on a person, who knows or suspects that any property:

1. in whole or in part directly or indirectly represents any person’s proceeds of;
2. was used in connection with; or
3. is intended to be used in connection with,

drug trafficking or an indictable offence, to disclose that knowledge or suspicion, together with any matter on which that knowledge or suspicion is based, to an authorised officer as soon as it is reasonable for him to do so.

Section 25(1) Maximum 14 years’ imprisonment and a fine of HK$5,000,000.

Reasonable grounds to believe
A person commits an offence if, knowing or having reasonable grounds to believe that such property in whole or in part directly or indirectly represents any person’s proceeds of drug trafficking or of an indictable offence respectively, he deals with that property.

• “knowing or having reasonable grounds to believe” means to be aware of or have reason that would support a belief
• “proceeds of an indictable offence” means criminal proceeds
• “dealing” or “deal” refers to the definition under section 2 of the OSCO and includes: 
  • receiving or acquiring the property; concealing or disguising the property (whether by concealing or disguising its nature, source, location, disposition, movement or ownership or any rights with respect to it or otherwise);
  • disposing of or converting the property;
  • bringing into or removing from Hong Kong the property;
  • using the property to borrow money, or as security (whether by way of charge, mortgage or pledge or otherwise)
• “property” refers to the definition under section 2 of the OSCO and includes both movable and immovable property. 

Section 25A(5) Maximum 3 years’ imprisonment and a fine of HK$500,000.

Tipping off
It is an offence for a person, knowing or suspecting that a disclosure has been made under section 25A, to disclose to any other person any matter which is likely to prejudice any investigation which might be conducted following the first-mentioned disclosure.

UNATMO

Section 12 Maximum 3 months’ imprisonment and a fine of HK$50,000.

Failure to disclose
A duty is imposed on a person who knows or suspects that any property is terrorist property, to disclose to an authorised officer the information or other matter:

1. on which the knowledge or suspicion is based; and
2. as soon as is practicable after that information or other matter comes to the person’s attention.

Section 7 Maximum 14 years’ imprisonment and a fine.

Intention or knowledge  
A person commits an offence if he provides or collects funds, by any means, directly or indirectly: 

1. with the intention that the funds be used; or
2. knowing that the funds will be used, 
   in whole or in part, to commit one or more terrorist acts (whether or not the property is actually so used). 

Section 12(5) Maximum 3 years’ imprisonment and a fine.

Tipping off
It is an offence for a person, knowing or suspecting that a disclosure has been made, to disclose to any other person any matter which is likely to prejudice any investigation which might be conducted following the first-mentioned disclosure.