Hong Kong Enhances Financial Security Measures to Boost Market Attractiveness

The Hong Kong government is stepping up efforts to reinforce its status as a leading international financial centre by introducing stronger safeguards against financial crime.

In a joint announcement, the Hong Kong Monetary Authority (HKMA), the Hong Kong Association of Banks (HKAB), and the Hong Kong Police Force (HKPF) unveiled a series of new initiatives aimed at preventing, detecting, and disrupting fraudulent activities.

A key focus of the measures is tackling fraud and associated mule account networks. In 2024, Hong Kong recorded 44,480 reported deception cases—an increase of 11.7% compared to the previous year.

To bolster intelligence sharing, the HKMA plans to launch an upgraded information exchange platform for banks by late 2025. Currently, 10 banks are participating in data sharing via the Financial Intelligence Evaluation Sharing Tool (FINEST), which is operated by the HKPF.

The HKMA and HKPF also announced the expansion of Scameter data usage. Banks will be expected to integrate this data with their network analytics tools to better identify and share intelligence on suspected mule account networks.

In addition, the HKMA will collaborate with banks to conduct thematic reviews of system performance and establish a regular communication mechanism to enhance the sector’s ability to detect and respond to financial crime.

Legislative amendments have also been introduced to facilitate bank-to-bank information sharing in cases involving potential illicit activities, including money laundering and terrorist financing.

In 2024, authorities arrested 10,496 individuals in connection with deception and money laundering offences. Of these, 7,700 were found to have sold or allowed their bank accounts to be used for criminal purposes.