The Narcotics Division is seeking remittance agents and money changers' views on a proposal to lower the threshold for verification of a customer's identity and record keeping from $20,000 to $8,000.

The proposal will enhance the effectiveness of Hong Kong's anti-money laundering and counter-terrorist financing regime. It is in response to the Special Recommendation VII of the Financial Action Task Force on Money Laundering, the international anti-money laundering standard-setter.

About 1,700 remittance agents and money changers will be required to verify customer's identity and keep records of transactions over $8,000. The current threshold is $20,000.

Remittance agents are also required to record and retain particulars of the sender and the instructor of a remittance transaction if the two are not the same person.

Remittance agents are also encouraged to take an additional step to combat terrorist financing more effectively by including the sender's information in the message accompanying the remittance.

Local remittance agents and money changers are invited to forward their views and comments in writing by November 20. The consultation paper has been uploaded to the Narcotics Division's website. It is anticipated that the requirements will also be implemented by the banking industry in January.