The Law of the PRC on Safeguarding National Security in the HKSAR: Business Impact in Hong Kong

On the evening of 30 June 2020, the Hong Kong Government gazetted the Law of the People's Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region (NSL) with the new law taking immediate effect that day. In addition, on 6 July 2020, the Chief Executive, in conjunction with the National Security Committee, exercised her powers under Article 43 of the National Security Law to make implementation rules for law enforcement agencies. As such, the Operating Principles and Guidelines for Application for Authorization to Conduct Interception and Covert Surveillance (Operating Principles and Guidelines), and the Implementation Rules for Article 43 of NSL (Implementation Rules) have both been adopted and now have the force of law.

The NSL raises important legal and compliance questions for businesses with operations in Hong Kong and for offshore operations serving Hong Kong. It is important for all companies with a nexus to Hong Kong to be mindful of the implications of the new legislation and keep informed to stay in compliance with its legal obligations.

This note provides a high-level overview of the NSL, with a focus on how companies can manage compliance risks under the law.

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