AML/CFT Regtech: Case Studies and Insights Volume 2

The Hong Kong Monetary Authority (HKMA) published today (25 September) the report titled, “AML/CFT Regtech: Case Studies and Insights Volume 2”, which shares real-life use cases from banks in their Regtech adoption to make their Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) efforts more effective and efficient.

This report covers more sophisticated AML Regtech solutions, building on the first volume of January 2021¹ which shared perspectives of banks that were in the early phase of incorporating Regtech in their AML processes.  In the course of only two years, significant progress by banks has been made in AML Regtech adoption.

Four broad areas of Regtech implementation and real-life use cases are featured:

• Real-time Fraud Monitoring
• Machine Learning for Transaction Monitoring Alerts Handling
• Natural Language Processing for Media Monitoring
• Analytics with a “Single View of the Customer”

The HKMA is committed to continuing its promotion and facilitation of AML Regtech adoption to strengthen banks’ gatekeeper role in helping safeguard the integrity and stability of the financial system.

Mr Arthur Yuen, Deputy Chief Executive of the HKMA, said, “I am pleased to see that most banks’ AML functions are already well past the early stage of Regtech adoption, and some have reached an advanced stage.  I am confident that these capabilities, when implemented more widely, will help banks monitor and respond to fraud and financial crime risks, and thus contributing further to an effective response across Hong Kong’s AML eco-system.”

The report can be found at the Annex.

Hong Kong Monetary Authority
25 September 2023