Hong Kong Country Summary
Medium Risk
View full Ratings TableSanctions
Medium Concern
FATF AML Deficient List
Lower Concern
Terrorism
Lower Concern
Corruption
Lower Concern
US State ML Assessment
Higher Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Higher Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Hong Kong is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Hong Kong was undertaken in 2023. According to that Evaluation, Hong Kong was deemed Compliant for 11 and Largely Compliant for 25 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 6 of the Effectiveness & Technical Compliance ratings.
Sanctions
Multiple jurisdictions have imposed autonomous sanctions on Hong Kong, including asset freezes and travel bans on officials and restrictions on trade and defense-related exports by the United States (OFAC), the European Union, the United Kingdom, Australia, Canada, Japan, New Zealand, Switzerland, and others. There are no UN sanctions directly targeting Hong Kong as a jurisdiction, though UN measures apply to entities connected to DPRK and Iran, while Hong Kong is described as a hub for sanctions evasion that prompts ongoing international responses.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 76 |
| World Bank: Control of Corruption Percentile Rank | 93 |
Hong Kong has established a robust framework for combating corruption, primarily through the efforts of the Independent Commission Against Corruption (ICAC), which has significantly contributed to the region's reputation for integrity. The ICAC's active participation in international anti-corruption initiatives and the establishment of the Hong Kong International Academy Against Corruption further enhance its capabilities in addressing corruption both locally and globally, ensuring that it remains a favorable environment for foreign direct investment.
Economy
Hong Kong, as a Special Administrative Region of China, has historically maintained a high degree of autonomy and a free-market economy, making it a significant hub for international trade and investment. However, the imposition of the National Security Law in 2020 and subsequent legislation, such as the Safeguarding National Security Ordinance, have introduced considerable uncertainty and risks for both local and foreign businesses, raising concerns about the erosion of judicial independence and the rule of law. Despite these challenges, Hong Kong remains an attractive destination for foreign direct investment, bolstered by its competitive sectors, favorable tax regime, and open economy, although the recent political climate has led to a decline in the number of foreign multinational companies operating in the region.
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