The Hong Kong Monetary Authority (HKMA), Hong Kong Police Force (HKPF), and The Hong Kong Association of Banks (HKAB) jointly announced a series of measures aimed at enhancing the prevention and detection of financial crime, including fraud and money laundering.
Authorities are responding to a significant increase in deception-related crimes, driven largely by sophisticated technologies enabling criminals to target individuals rapidly and extensively.
In 2024 alone, Hong Kong reported 44,480 deception cases, marking an 11.7% increase compared to the previous year.
Furthermore, arrests related to deception and money laundering rose by 13.6%, with approximately 10,496 individuals apprehended, including around 7,700 individuals specifically linked to mule accounts.
In response to these escalating threats, the HKMA, HKPF, and the banking industry introduced five targeted initiatives.
A significant component is the expanded use of Scameter data, enabling banks to better detect suspicious accounts and proactively warn customers about potential risks.
Banks are encouraged to leverage advanced network analytics to improve disruption of mule account operations.
Additionally, legislative amendments will facilitate greater bank-to-bank information sharing concerning suspected prohibited activities, such as money laundering and terrorism financing.
Currently, ten banks share such information through the Financial Intelligence Evaluation Sharing Tool (FINEST) operated by the HKPF, with plans to upgrade the platform to handle increased information exchanges by the year-end.
The HKMA has also enhanced its dissemination of effective anti-fraud practices to banks, aiming to improve institutions’ internal control systems.
The authority will conduct thematic reviews with banks to assess and enhance anti-fraud measures, establishing continuous communication to effectively identify and disrupt mule account networks.
To bolster public awareness, the newly formed Anti-fraud Education Taskforce, under the HKAB and involving 18 major banks, will intensify outreach efforts, reinforcing the critical message against lending or selling bank accounts.
Authorities noted a significant increase in prosecutions related to money laundering, emphasizing strict penalties including prison sentences up to 75 months.