The Chief Executive
All Stored Value Facility Licensees
Dear Sir / Madam
I am writing to share the captioned report (Annex) which forms part of the Hong
Kong Monetary Authority’s (HKMA) ongoing initiative to promote Regtech
adoption in Anti-Money Laundering and Counter-Financing of Terrorism
(AML/CFT) and increase the effectiveness of efforts to combat digital fraud and
financial crime in the banking sector. The report builds on the first volume of the
“AML/CFT Regtech: Case Studies and Insights”, published in January 20211
, and aims to give further impetus to adoption rates, which have increased significantly
since the work commenced in 2019.
This latest report was developed with industry collaboration and in cooperation with
an international consulting firm, sharing comprehensive, end-to-end experience and
success stories from a number of banks of different sizes and at different stages in
their AML Regtech adoption journeys. Four broad areas of Regtech implementation
and real-life use cases are featured, including real-time fraud monitoring, machine
learning for transaction monitoring alerts handling, natural language processing for
media monitoring and analytics providing a ‘single view of the customer’. Under its “Fintech 2025” strategy, the HKMA remains committed to the promotion
of AML Regtech adoption to tackle the harm caused by digital fraud and other
financial crimes, as well as delivering sustainable and effective AML/CFT systems.
Stored Value Facility licensees are encouraged to study the report and have regard to
the shared experience and insight to help staying effective and efficient in the light
of evolving risks.
Should you have any questions regarding this circular, please contact us at
Yours faithfully, Carmen Chu
Executive Director (Enforcement and AML) Annex “AML/CFT Regtech: Case Studies and Insights Volume 2’’ (PDF File, 17.5 MB) 1 ) AML/CFT Regtech: Case Studies and Insights (https://www.hkma.gov.hk/media/eng/doc/keyinformation/guidelines-and-circular/2021/20210121e1a1.pdf)
Comments