AML/CFT Supervision in the Age of Digital Innovation

How does data- and technology-driven innovation change how we combat financial crime in Hong Kong?

Since 2019, Deloitte China has been supporting the Hong Kong Monetary Authority (HKMA) with the Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) Surveillance Capability Enhancement Project (hereafter “the AMLS Project”)—an effort to encourage responsible innovation and practical, outcomes-focused Regtech adoption by AML/CFT teams within Authorised Institutions (AIs) and Stored-Value Facility (SVF) licensees, and also to enhance the HKMA’s risk-based approach to AML/CFT supervision through the adoption of innovative technologies and techniques.

Our team helped the HKMA host its inaugural AML/CFT RegTech Forum in November 2019, where over the course of two days, participants from all HKMA-licensed banks, technologists from industry and academia, as well as representatives from peer financial regulators and law enforcement agencies in Hong Kong, gathered to discuss the opportunities and challenges presented by the application of innovative technologies within AML/CFT, and offer practical, relevant support to banks at various stages of their respective AML/CFT Regtech adoption journeys.

AML/CFT Supervision in the Age of Digital Innovation, the publication issued alongside the HKMA Circular (Ref.: B10/21C) on 29 September 2020, provides a much anticipated update to the industry on the progress that has been made since the AML/CFT RegTech Forum, and articulates the HKMA’s forward-looking strategic vision for how AML/CFT supervision must become more “proactive, targeted and collaborative.”

The publication also highlights four key themes that will inform the work of its AML/CFT specialists over the next three years.

To learn more about how we have been helping the HKMA apply innovation to their approach to risk-based AML/CFT supervision, or about our approach to evolving the industry’s fight against financial crime through data, technology and talent development, contact our programme leadership.

Key Contact

Tony Wood
Partner | Risk Advisory, Hong Kong SAR
+852 2852 6602 |

Ohwen Yong
Partner | Financial Advisory, Hong Kong SAR
+852 2238 7286 |

Josh Plant
Director | Financial Advisory, Hong Kong SAR
+852 2531 1391 |

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