The Hong Kong Monetary Authority (HKMA), the Hong Kong Police Force (HKPF), and The Hong Kong Association of Banks (HKAB) joined forces on 10 April 2025 to unveil new measures to combat financial crime.
These initiatives aim to prevent, detect, and disrupt activities like fraud and mule account networks, marking a step towards safeguarding Hong Kong’s financial system.
Fraud is becoming increasingly sophisticated and widespread, with technology enabling criminals to exploit victims more quickly and on a larger scale, further intensifying the threat. In 2024, a total of 44,480 cases of deception were reported, marking a significant 11.7% rise compared to 2023.
To address the evolving challenges of fraud and align with international best practices, the HKMA, HKPF, and the banking industry are implementing the following measures:
Firstly, the HKMA and HKPF have expanded the use of Scameter data to help banks identify suspicious accounts and alert at-risk customers to combat financial crime in Hong Kong.
Banks are expected to combine this data with network analytics to identify and share information on mule account networks, enhancing efforts to disrupt fraudulent activities.
Next,to better protect customers, the HKMA has proposed legislative changes to allow banks to share information when they detect potential prohibited activities, such as money laundering or terrorist financing, termed bank-to-bank information sharing.
Currently, ten banks are using the Financial Intelligence Evaluation Sharing Tool platform managed by the HKPF for information sharing. By the end of the year, an upgraded platform designed for higher volumes of data exchange is expected to be operational.
Thirdly, to improve the effectiveness of banks’ systems in preventing, detecting, and disrupting fraud and scam-related money laundering activities, the HKMA has shared good practices to strengthen banks’ anti-fraud and anti-money laundering systems.
Fourthly, to help banks implement effective anti-fraud measures, the HKMA will collaborate with them on thematic reviews to assess system performance and establish a regular communication platform with the industry, aiming to enhance the banking sector’s ability to detect mule account networks.
Finally, the HKMA, HKPF, and the banking industry will enhance publicity and education efforts on the “Don’t Lend/Sell Your Account” message through targeted outreach activities and improved industry coordination. This includes the formation of the Anti-fraud Education Taskforce by the HKAB, involving 18 major banks, to strengthen awareness and prevent fraudulent activities.
The public is advised against lending or selling their bank accounts to others, as doing so could lead to serious consequences, including potential prosecution and conviction for criminal offences such as money laundering.
Due to the gravity of these offences, the HKPF requested the Court to impose enhanced sentencing where applicable. By early April 2025, the prison terms for 95 mule account holders were extended by 13% to 33%, resulting in sentences ranging from 21 to 75 months.
Source of image: Edited from Freepik
