Regulatory Alerts2024-04-17
Added · Updated
Thematic Review of Transaction Monitoring Systems and Use of Artificial Intelligence
The Hong Kong Monetary Authority issued this circular to share findings from a thematic review of Authorized Institutions' transaction monitoring systems and their adoption of artificial intelligence. The document outlines regulatory expectations for optimizing these systems based on size, business scope, and money laundering or terrorist financing risks, while providing guidance on governance, data quality, and detection scenarios. It emphasizes that institutions must strengthen the effectiveness of their anti-money laundering controls by implementing best industry practices and leveraging technology to improve system efficiencies.