One of the proposals would draw in five non-financial sectors as "gatekeepers'' against money laundering while another will authorize officials to stop visitors at border checkpoints and ask them to declare the amount of cash in their possession.

The United States in particular has been pushing worldwide for tougher controls on money laundering as part of its campaign against terrorists since 2001 and anti-narcotics efforts.

The measures being considered for Hong Kong are in line with international recommendations.

The new sectors to be included in the prevention of money laundering activities are: real estate agents, dealers in precious metals and stones, trust and company service providers, lawyers and accountants, and casinos.

Currently, only those working in the financial sector have been asked to report suspicious transactions to the police.

``Hong Kong is an international financial center. Any international financial center which guarantees a free flow of capital is likely to be used as a vehicle for money laundering,'' Commissioner for Narcotics Rosanna Ure said Tuesday.

The International Monetary Fund has estimated that money laundering activities involve between 2 percent and 5 percent of the world's gross domestic product.

Based on World Bank figures, this means that between US$727 billion and US$1.8 trillion (HK$5.67 trillion and HK$14.04 trillion) was laundered around the world in 2003. This estimate also means that between US$3.2 billion and US$7.9 billion was laundered in Hong Kong that year.

The legislation is in line with recommendations from the inter-governmental Financial Action Task Force on Money Laundering, which has a mandate ``to combat money laundering and terrorist financing.''

The body has a set of 40 recommendations for its 33 members to follow.

Hong Kong, Singapore and Japan are the only Asian members.

Hong Kong has no casinos, but Ure said the government had talked to the Hong Kong Jockey Club, which has already stepped up measures against money laundering. These require large payouts to be recorded and large bets to be scrutinized.

Ure said existing laws require everyone in Hong Kong to report suspicious transactions to the police.

But the laws do not require business executives and professionals to verify the identities of their customers or to verify whether accounts are held in fictitious names.

The new law will require those professionals to keep transaction records for at least five years should they be required by law enforcement agencies.

Ure said the government will consult the relevant trade and professional bodies before finalizing the bill.

She added that a balance must be struck between lawyer-client confidentiality agreements and efforts to prevent money laundering.

Society of Hong Kong Real Estate Agents vice-president Alex Tang said gangsters could launder criminal proceeds in the property market by various means such as trading properties at extraordinary prices and completing their transactions in cash, rather than with checks.

He agreed that real estate agents should be involved in the prevention of money laundering, but he hoped the government will draw up clear and precise guidelines.

He also hoped the law would protect real estate agents from litigation as a result of their compliance with anti-money laundering guidelines.

Ure said that some countries such as the United States and Canada asked visitors to declare the amount of cash they are carrying.

However, he said that approach in Hong Kong would involve a great deal of administrative work and disrupt the traffic flow of both visitors and cargo.

As such, the government preferred the alternative option of intercepting visitors based on intelligence or suspicious circumstances.

Ure said the bill would authorize officials to stop visitors and ask them to give details of the money they had in cash or traveller's checks.

Ure said she hoped the bill would be passed quickly because a team from the Financial Action Task Force will be in Hong Kong in 2007 to evaluate the territory's compliance with anti-money laundering initiatives.

dennis.ng@globalchina.com