Country Report on Terrorism 2020 - Chapter 1 - China (Hong Kong and Macau) - Hong Kong

Overview:  A major part of Hong Kong’s CT cooperation with the United States centers on information sharing.  Hong Kong continued security and law enforcement cooperation with the United States through the Hong Kong Customs and Excise Department’s joint implementation of the Container Security Initiative.  Hong Kong cooperated internationally on CT efforts through INTERPOL and other security-focused organizations.

2020 Terrorist Incidents:  There were no reported terrorist incidents in Hong Kong in 2020.

Legislation, Law Enforcement, and Border Security:  Counterterrorism remained an operational priority for the Hong Kong Police Force.  The Police Counterterrorism Response Unit provides a strong deterrent presence, assisting police districts with CT strategy implementation and complementing the tactical and professional support of existing police specialist units such as the Explosive Ordnance Disposal Bureau, the Special Duties Unit, the Airport Security Unit, and the VIP Protection Unit.  In June, the Standing Committee of the National People’s Congress passed the Law of the People’s Republic of China on Safeguarding National Security (NSL) in the Hong Kong Special Administrative Region.  The NSL contains new offenses that carry criminal penalties of up to life imprisonment, including offenses related to organizing, planning, committing, participating in, or threatening enumerated “terrorist activities.”  The NSL has been widely criticized for its potential use against prodemocracy activists and other protestors in Hong Kong.

In 2018 the Hong Kong government set up the Inter-Departmental Counterterrorism Unit (IDCU) to strengthen overall CT efforts by monitoring global trends, reviewing and improving CT strategies in Hong Kong, developing specialized CT training, and optimizing emergency response plans.  The IDCU held its most recent annual exercise in March.

Countering the Financing of Terrorism:  Hong Kong is a member of FATF and APG.  Hong Kong’s FIU, the Joint Financial Intelligence Unit, is a member of the Egmont Group.

In July the Hong Kong Monetary Authority issued circulars that shared observations and recommendations to help industry develop sustainable efforts to cope with the evolving COVID-19 situation and minimize any potential negative effects on businesses that support AML/CFT measures.

In September the Securities and Futures Commission launched a three-month consultation on its proposals to amend AML/CFT guidelines.  The proposed amendments aim to facilitate the adoption of a risk-based approach to AML/CFT measures by the securities industry and to mitigate risks associated with cross-border correspondent relationships.

In November the Hong Kong government launched a three-month consultation on legislative proposals to enhance Hong Kong’s AML/CTF regime through the introduction of a licensing requirement for virtual asset services providers and a registration system for dealers in precious metals and stones.  The government aims to introduce a bill into the Legislative Council in 2021.

Countering Violent Extremism:  There were no changes to Hong Kong’s CVE programming in 2020.

International and Regional Cooperation:  The Presidential Executive Order on Hong Kong Normalization ended U.S. government-sponsored capacity-building training programs for Hong Kong law enforcement in July.  Owing to COVID-19 restrictions, the 2020 tripartite online meeting involving mainland China, Hong Kong, and Macau to foster cooperation on AML/CFT was postponed until 2021.  Hong Kong is an APEC economy.

Associated documents