The Hong Kong Monetary Authority (HKMA) has released an updated guidance paper on transaction monitoring, screening, and reporting. Supervisory expectations are clarified with regard to governance, alert handling and other controls in order for FI’s to use more advanced data sources to combat financial crime and fraud.
The updated Guidance Paper provides guidance and support for the design, setting and oversight of transaction monitoring and screening systems and processes. A key objective is to support the greater use of technology to generate targeted alerts which deliver more actionable intelligence on AML/CFT. There is an increased emphasis on both data accuracy and the integration of external information and authorised institutions are encouraged to explore the greater use of data from the Commercial Data Interchange to help make systems for customer due diligence and data-driven customer risk assessment and monitoring more effective.
Updates have also been made to optimise fraud and suspicious transaction reporting.
This Guidance should be read in conjunction with the Anti Money Laundering and Counter Terrorist Financing Ordinance #AMLO, the Guideline on AML/CFT, and other relevant laws.