Regulatory Alerts2024-04-17
Added · Updated
Thematic Review of Transaction Monitoring Systems and Use of Artificial Intelligence
The Hong Kong Monetary Authority issued this report following a thematic review of Authorized Institutions' transaction monitoring systems to enhance their design, implementation, and optimization. The document outlines critical processes including robust governance, risk coverage assessment, data quality testing, and appropriate customer segmentation to ensure systems effectively detect money laundering and terrorist financing risks. It further provides insights on leveraging artificial intelligence and Regtech tools to reduce false positives and improve operational efficiency while adhering to established supervisory principles.