The fourth Anti-Money Laundering Regtech Lab: supporting an agile, coordinated and strategic response to digital fraud and financial crime
The Hong Kong Monetary Authority (HKMA) and Cyberport co-hosted the fourth Anti-Money Laundering Regtech Lab (AMLab 4) , with support from Deloitte. The AMLab series helps enhance capabilities in the use of data and technology to respond effectively to the heightened threat of digital fraud and related money laundering, which increasingly threatens the integrity of our banking system as well as undermines trust in digital financial services.
AMLab 4 brings together retail banks, technology companies and industry experts to innovate and develop a sector-wide approach to real-time fraud monitoring, to help customers identify and take action to prevent fraud. For the first time, major Stored Value Facility (SVF) licensees also join the event. The following capabilities are explored:
| (a) | proactive detection of money mule accounts to increase the early identification capacity and alerts for potential victims of deception to protect against losses; |
| (b) | promoting industry-wide adoption of AML Regtech tools to increase effectiveness of real-time fraud monitoring across the board, noting that about 60% of retail banks are now using network analytics, more than twice as many as three years ago; and |
| (c) | best practices in the use of data and a more coordinated approach across fraud and money laundering risk disciplines, noting that about 80% of retail banks are now ingesting non-traditional data such as digital footprints and customer behaviour into monitoring systems. |
Also featured is Regtech Connect, a collaborative platform in which technology companies demonstrate and discuss relevant Regtech tools and solutions with participating banks and SVF licensees.
Sharing the common purpose of “gatekeeping” the banking system from being exploited for fraud and financial crime, the HKMA and banks are committed to innovating their response, including adoption of a consistent, coordinated approach to real-time fraud monitoring by all retail banks before the end of September 2023. The outcomes will be tracked against the HKMA’s 2023 work priorities1 as well as the five joint anti-deception initiatives announced recently by the HKMA and Hong Kong Police Force (HKPF)2. The HKMA will continue to prioritise working with banks and all stakeholders towards an ecosystem response to fraud and financial crime risk.
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