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Hong Kong’s Regulatory Bodies Pivot to Financial Crime Prevention

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Hong Kong’s financial regulatory bodies are taking a proactive approach to prevent financial crime by promoting the adoption of anti-money laundering and counter-terrorism financing (AML/CFT) technology.

Encouraging Regtech Adoption

The Hong Kong Monetary Authority (HKMA), in particular, has been at the forefront of this initiative. In recent years, the HKMA has taken a range of measures to encourage the use of AML/CFT Regtech solutions among financial institutions in the territory.

Remote Onboarding and Identity Verification

Key Focus Area

The HKMA has issued guidelines and provided feedback to industry players on best practices for remote onboarding and identity verification. This initiative aims to enhance the effectiveness of AML/CFT control measures for remote customer on-boarding initiatives.

Thematic Reviews and Case Studies

The HKMA has conducted thematic reviews of AML/CFT control measures for remote customer on-boarding initiatives, identifying key observations and good practices that can be applied by financial institutions. Additionally, the authority has launched a number of reports and case studies highlighting the benefits of adopting AML/CFT Regtech solutions.

Enhancing Surveillance Capabilities

In a speech delivered in September 2021, HKMA Chief Executive Eddie Yue emphasized the importance of building an effective AML regime for the future. “We need to leverage technology and innovative solutions to enhance our AML capabilities and stay ahead of emerging threats,” he said.

Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) Surveillance Capability Enhancement Project

The HKMA has launched the AML/CFT Surveillance Capability Enhancement Project, which aims to improve the authority’s ability to monitor and detect suspicious transactions and activities.

Industry Recognition

Hong Kong’s efforts have been recognized by industry players and experts alike, who see the territory as a global leader in AML/CFT regulation. “Hong Kong is taking a proactive approach to AML/CFT regulation, and its efforts are paying off,” said one financial expert. “The authority’s focus on Regtech adoption is helping to drive innovation and improve compliance across the industry.”