On 10 Apr 2025, the HKMA issued measures to strengthen fraud and money laundering responses, including legislative amendments enabling voluntary bank-to-bank information sharing under the Banking (Amendment) Bill 2025, expanded Scameter data utilisation for mule account detection, and industry good practices for APS prevention. Banks must align AML systems with these measures, while the HKMA will monitor implementation through thematic reviews and enhance public education via targeted outreach.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
Opening Bank Accounts: Duties of Banks in Hong Kong to Combat Tax Evasion
Hong Kong money laundering laws require banks to assess the risk of tax evasion in evaluating bank account opening applications. Prospective customers applying
Opening a Bank Account in Hong Kong: Latest Regulatory Developments
For many new businesses, opening a bank account is a mission critical task. Unfortunately, as a result of significant growth in laws intended to combat money l
SPOTLIGHT ON
FAMILY OFFICES
Legislative Amendment for Bank-to-Bank Information Sharing
On 10 Apr 2025, the HKMA announced the Banking (Amendment) Bill 2025, which enables voluntary information sharing among banks regarding suspected prohibited conduct (money laundering, terrorist financing, or proliferation financing). The Bill establishes thresholds, safe harbour legal protection, confidentiality obligations, and designated platform requirements. Retail banks must review internal systems to support future participation, building on existing FINEST platform usage by ten banks.
Expanded Scameter Data Utilisation
Banks are invited to participate in the expanded Scameter database initiative to enhance detection of suspicious accounts and transactions. Using additional data points (e.g., phone numbers, email addresses), banks must leverage network analytics to identify linked accounts/proxies, report newly identified suspicious entities to the HKPF, and disrupt mule account networks. Six institutions are piloting the expansion, with further bank invitations contingent on system readiness.
Good Practices for Fraud and Money Laundering Prevention
The HKMA shared industry-identified good practices for protecting customers from authorized payment scams (APS) and disrupting mule account networks. These practices, derived from banking industry and HKPF engagements, align with existing AML regulatory expectations and include scalable technological solutions and process improvements. Banks are required to incorporate these into their AML systems to ensure proactive APS measures, with the HKMA monitoring implementation effectiveness through thematic reviews.
Enhanced Supervision and Public Awareness
The HKMA will conduct thematic reviews later in 2025 to assess banks' APS and mule account measures, establishing a regular communication platform with banks to strengthen sector-wide detection capabilities. Concurrently, the HKMA, HKPF, and banking industry are intensifying public education campaigns targeting high-risk groups (e.g., elderly, domestic helpers) via the 'Don’t Lend/Sell Your Accounts' initiative and the Anti-fraud Education Taskforce formed by the HKAB.
View the full article:Source
