BANKS that are based in Hong Kong have been told to report any transaction that they believe may violate the national security law.
Last month, the Hong Kong Monetary Authority updated its advise to companies in an amended document of frequently asked questions, to report transactions suspected to be linked to national security and should be treated similarly to transactions suspected to be financing terrorism or money laundering.
According to reports, the updated advice is not an official guideline, but applies to both Hong Kong and international banks. The said document was drafted with the assistance of the Hong Kong association of banks.
Reports say that until there are official regulators, financial institutions are responsible to determine what transactions could constitute a reportable breach of the national security law.
The intelligence unit is jointly run by the police force of Hong Kong and its customs and excise department.
In late June, the national security law was imposed in Hong Kong by Mainland China. The said law outlaws any acts of subversion, secession, terrorism, and foreign collusion, but pro-democracy protesters have criticized the law as draconian.