Regulatory Alerts2019-06-14
Added · Updated
Feedback From Thematic Review of AIs’ Application of AML/CFT Controls in the SME Segment
The Hong Kong Monetary Authority issued feedback from a thematic review of Authorized Institutions' application of anti-money laundering and counter-financing of terrorism controls for Small and Medium-sized Enterprise customers. The regulator requires banks to implement a risk-based approach that differentiates customer risk levels and avoids one-size-fits-all documentation, ensuring due diligence measures are proportionate to the identified risks. Key expectations include providing adequate staff training, improving communication with applicants, and utilizing technology to enhance the efficiency and effectiveness of customer due diligence processes.