The Court of Final Appeal’s judgment in 

 [2024] HKCFA 8 marks the end of a landmark challenge to the legality of Police operations involving “letters of no consent” to prevent the dissipation of suspects funds in criminal investigations. The Judgment contains important guidance for banks and financial institutions in applying anti-money laundering legislation.

The Applicants’ banks accounts were frozen after police relayed suspicions to the relevant banks that the accounts contained funds representing the proceeds of crime. The banks were encouraged to block the Applicants accounts and to file Suspicious Transaction Reports (“STRs”), which they duly did. Letters of “no consent” (“LNCs”) were then issued. The aim was “

to prevent dissipation of assets … while police investigation is ongoing

” (Judgment §§50, 51). Dealing with funds subject to LNCs exposes banks to criminal liability risks under s.25(1) of the Organized and Serious Crimes Ordinance (“OSCO”) and under other anti-money laundering legislation.

The Court found that the conduct of police in communicating criminal suspicions to the banks, and in issuing LNCs, was lawful:

The Court noted that persons affected by the Steps or LNCs can (i) bring judicial review proceedings against police; or (ii) seek relief against banks in a suit of law for withholding their funds.

, and Geoffrey Yeung, instructed by O Tse & Co., acted for the Applicants.

, instructed by the Department of Justice, acted for the Respondent led by Benjamin Yu SC and Jenkin Suen SC.

 acted for the Respondent in the Court of First Instance.

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Court of Final Appeal Upholds “Letters of No Consent” Scheme

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