GUIDANCE PAPER Transaction Monitoring, Screening and Suspicious Transaction Reporting

🇭🇰 The Hong Kong Monetary Authority (HKMA) has just issued an updated Guidance Paper to provide support to banks in their implementation of advanced data and technology strategies, as well as innovative approaches to transaction monitoring, screening, and reporting of suspicious transactions.

The updated paper includes clarifications on supervisory expectations for governance, alert handling, and other critical controls for banks to use richer data sources effectively to combat fraud and financial crime.

This Guidance Paper should be read in conjunction with the AntiMoney Laundering and Counter Terrorist Financing Ordinance (AMLO), the Guideline on AntiMoney Laundering and Counter Financing of Terrorism, and other relevant laws.

The AML/CFT Guideline sets out the statutory and regulatory requirements, while this Guidance Paper provides practical guidance on measures Authorized Institutions can take to mitigate money laundering, terrorist financing, financial sanctions, and proliferation financing risks.

In summary, the HKMA has taken steps to support banks in their efforts to combat financial crime by issuing an updated Guidance Paper, providing practical guidance on transaction monitoring, screening, and reporting of suspicious transactions.