UNSCR 1874: HONG KONG AWAITS BEIJING'S GUIDANCE

UNCLAS HONG KONG 001204 SENSITIVE SIPDIS STATE FOR EAP/CM, ISN/CPI, IO, USUN, T TREASURY FOR U/S LEVEY E.O. 12958: N/A TAGS: PARM PREL ECON EFIN MNUC KNNP KN HK MC SUBJECT: UNSCR 1874: HONG KONG AWAITS BEIJING'S GUIDANCE REF: A. SECSTATE 65483 ¶B. SECSTATE 66250 ¶1. (SBU) On June 30, EconOffs conveyed reftel A and B points to Wendy Chung, Principal Assistant Secretary, and Anna Chor, Assistant Secretary, at the Hong Kong Government's (HKG) Commerce and Economic Development Bureau (CEDB). Chung confirmed that CEDB will take the lead in drafting the HKG's implementation guidelines for UNSCR 1874, but awaits guidance from China's Ministry of Foreign Affairs (MFA). Chung summarized Hong Kong's UNSCR implementation process, indicating that after China's MFA provides its guidance, CEDB will draft implementation guidelines, obtain interagency concurrence, then forward the proposal to Hong Kong's Executive Council (ExCo) for final approval. Approved guidelines are then gazetted for legal implementation. Chung added that the Hong Kong Customs and Excise Department (HKCED) and the Hong Kong Monetary Authority (HKMA) would be the primary enforcement agencies for the provisions contained in UNSCR 1874. ¶2. (SBU) EconOffs met same day with HKMA's Nelson Man, Executive Director for Banking Supervision Department, and Raymond Chan, Head of Banking Policy, to convey reftel B points and deliver the June 18 U.S. Treasury Department Advisory on DPRK's illicit financial activities. Man emphasized that the banks operating in Hong Kong consider any North Korean entity as "high risk," generally avoid transactions with North Korean entities, and exercise added due diligence when dealing with North Korea, in keeping with existing legal obligations (i.e., UNSCR 1718, etc.) He welcomed the Treasury Advisory, as the list of North Korean banks contained therein would be useful to increase banks awareness. ¶3. (SBU) EconOffs also provided reftel A and B points/non-papers to Macau's Monetary Authority President Anselmo Teng and Macau's Financial Intelligence Unit Head Deborah Ng on June 30. DONOVAN