Proposed beneficial ownership register for HK Companies not to be public

In the April 2017 Consultation Conclusions on the proposed changes to Hong Kong’s AML regime (to bring this in line with FATF requirements), the FSTB has resolved to proceed with only exempting listed companies from a new requirement for Hong Kong incorporated companies to maintain a register of “people with significant control” (PSC), so SFC licensed corporations will not be excluded. However a rule-making power will be included in the proposed legislation, which is hoped to be introduced to LegCo by July, to allow for further exemptions to be brought in through subsidiary legislation, if needed in future. 

Significant control will be defined as 25% direct or indirect shareholding or otherwise to exercise control of the management of the company. 

The main change to the original proposals, made to reflect privacy concerns, is that the PSC Register will be available only to competent authorities and not to the public.