2018/2019 Edition of the Global Regulatory Update

Global Regulatory Update  | Corporates Edition 71 about to launch a new drug for hepatitis C in China, was the first biotechnology firm to file for an IPO under the rules for biotech issuers. 5) HK AML/CTF financing amended On 5 July 2018, the Hong Kong Securities and Futures Commission (SFC) launched a consultation on amendments to anti-money laundering (AML) and counter-terrorist financing (CTF) guidelines. The intention is to keep Hong Kong in line with international AML/CTF standards. The proposed amendments expand the types of politically exposed persons to include customers who have been entrusted with a prominent function by an international organization. The SFC has also proposed streamlining the identification and verification processes for on boarding to allow flexibility for licensed corporations to adopt reasonable risk-based measures and determine the extent to which each individual’s identification information would need to be verified. Licensed corporations may use technology for non-face-to-face account opening if they can ensure and demonstrate that there are adequate safeguards. 6) Green Bonds On 7 July 2018, the Monetary Authority of Singapore (MAS) and the International Finance Corporation (IFC), a member of the World Bank Group, signed a Memorandum of Understanding (MOU) agreeing to work together to accelerate the growth of green bond markets in Asia. Under the MOU, both will encourage green bond issuances by financial institutions (FIs) in Asia by 1) enhancing the awareness and knowledge of professionals working in FIs on green finance issues through capacity building; and 2) promoting the use of internationally recognized green bond standards and frameworks. Interest in Green bonds has been growing in region. China is a sponsor of a G20 initiative on Climate Bonds with the United Kingdom. ASEAN recently agreed to green bond standards based on the International Capital Market Association Green Bond Principles. Indonesia also issued the first ever global green Sukuk offering, and the first green bond from an Asian sovereign issuer, which was well received. 7) Data On-shoring across Asia Some countries in the region are requiring the on-shoring of data and limits on cross border transfers. This prevents firms using regional and global data centres and applications. In-country data centres are also expensive. Another requirement is for IT hardware and software to be sourced from domestic providers. Reasons range from concerns about privacy, security and access to data to a desire to build in-country Business Process Outsourcing (BPO) capabilities. As a result, corporates