Country Reports on Terrorism 2012

China cooperated with other nations on counterterrorism efforts through military exercises and
assistance. In May, China hosted Thai marine forces in Guangdong province for joint
counterterrorism drills (Blue Commando 2012). In July, Tajikistan hosted Shanghai Cooperation
Organization members China, Kazakhstan, Kyrgyzstan, and Russia for counterterrorism
exercises (Peace Mission 2012). Also in July, China and Indonesia held their second round of
counterterrorism exercises in China (Sharp Knife 2012).
Hong Kong
Hong Kong continued its effective security and law enforcement partnership with the United
States, including through the Hong Kong Customs and Excise Department’s successful joint
operation of the Container Security Initiative, and through participation in U.S.-sponsored
capacity building training in counterterrorism-related topics, and through engagement with the
U.S. military. In ratifying UN Conventions on terrorism, the People’s Republic of China has
specified that the treaties would also apply to the Hong Kong Special Administrative Region,
which has subsequently implemented the Conventions through local ordinance. In July, Hong
Kong further strengthened its UN Anti-Terrorism Measures Ordinance by replacing the term
“funds” throughout, with the more comprehensive term “property,” to cover terrorist assets of
every kind. Counterterrorism, through policies on prevention, protection, and preparedness,
remained an operational priority for the Hong Kong Police Force. The Police Security Wing
coordinated potential terrorist threat information with relevant counterterrorism units. The Police
Counterterrorist Response Unit provided a strong deterrent presence, assisting police districts
with counterterrorist strategy implementation, and complementing the tactical and professional
support of existing police specialist units, such as the Explosive Ordnance Disposal Bureau,
Special Duties Unit, and the VIP Protection Unit.
Hong Kong is a member of the FATF, the APG, and the Egmont Group of Financial Intelligence
Units. Terrorist financing is a criminal offense in Hong Kong, and financial institutions are
required to continuously search for terrorist financing networks and screen accounts using
designations lists made by the United States under relevant authorities, as well as the UN 1267
Sanctions Committee’s consolidated lists. Filing suspicious transactions reports irrespective of
transaction amounts is obligatory for financial institutions, but Hong Kong lacks mandatory
reporting requirements for cross-border currency movements. In April, Hong Kong’s Anti-
Money Laundering and Counterterrorist Financing Ordinance went into effect mandating
customer due diligence and record-keeping in the financial sector as well as imposing statutory
supervision over money changers and remittance agents. For further information on money
laundering and financial crimes, we refer you to the 2013 International Narcotics Control
Strategy Report (INCSR), Volume 2, Money Laundering and Financial Crimes:
http://www.state.gov/j/inl/rls/nrcrpt/index.htm.
Macau
Macau’s counterterrorism cooperation with the United States included information exchange as
well as regular capacity building through the International Law Enforcement Academy (ILEA)
and other international organizations. Under the Macau Public Security Police Force, the Police
Intervention Tactical Unit (UTIP) is responsible for protecting important installations and
dignitaries, and for conducting high-risk missions, such as deactivation of improvised explosive
devices. UTIP’s Special Operations Group conducts counterterrorism operations. Macau law
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