The Hong Kong Monetary Authority (HKMA) published the conclusions of its public consultation on a proposal to allow banks to share customer information to combat financial crime.
The consultation, which was open for feedback earlier this year, aims to facilitate the sharing of customer account data between authorised institutions to aid in the prevention and detection of fraud, money laundering, and terrorist financing.
The HKMA will now move forward with legislative amendments as part of this initiative.
The public consultation, launched in January 2024, invited views from the banking sector, professional associations, law enforcement agencies, and the general public.
It focused on how information sharing could help strengthen the financial system’s defenses against criminal activities.
The HKMA received 18 submissions in total, reflecting support from various sectors, including the banking industry and public sector organisations.
A significant contribution came from the Office of the Privacy Commissioner for Personal Data, which provided insights on data protection measures under the Personal Data (Privacy) Ordinance.
These privacy concerns were addressed in the final conclusions.
Next, the HKMA plans to incorporate the feedback into legislative amendments as part of a broader review of the Banking Ordinance.
Ongoing discussions with stakeholders will focus on the practical aspects of implementing the proposed measures.
This move by the HKMA aligns with similar initiatives in the region to strengthen financial systems against criminal activity.
In Singapore, the Monetary Authority of Singapore (MAS) recently launched the COSMIC platform to combat financial crime.
The platform enables financial institutions to share information securely, helping in the detection of illicit activities such as money laundering and terrorism financing.
COSMIC’s development was a collaborative effort between MAS and six of Singapore’s largest commercial banks, including DBS, OCBC, UOB, Citibank, HSBC, and Standard Chartered Bank.
Featured image credit: Edited from Freepik
