HKMA Proposes Enhanced Data Sharing Among Banks for Fraud Preventionby Fintech News Hong Kong January 24, 2024
The Hong Kong Monetary Authority (HKMA) issued a public consultation paper, seeking views on a proposal to permit Authorised Institutions (AIs) to share customer account information to prevent and detect financial crime.
This move addresses the escalating issue of financial crime, particularly digital fraud, which threatens public trust in digital financial services.
The consultation seeks feedback on enabling AI-to-AI information sharing, including proposed legislative changes to safeguard AIs legally and ensure data privacy and customer confidentiality.
The approach is consistent with practices in other international financial centres.
Eddie Yue, Chief Executive of the HKMA, said,
“Fraud and financial crime risks have surged globally. Criminals increasingly exploit information gaps between banks and abuse the financial systems to move and hide illicit funds. Effective information sharing will help the banking sector, supervisors and law enforcement agencies turn the tables on fraud and financial crime and help protect consumers of financial services.”
Featured image credit: Edited from Freepik