Hong Kong’s central bank and financial regulator Hong Kong Monetary Authority (HKMA) has launched the AML Regtech Lab (AMLab) in cooperation with local tech provider Cyberport and accounting giant Deloitte.
The initiative is a step toward realising HKMA’s “Fintech strategy 2025”. The Regtech Lab will monitor the threat of “mule accounts” that illicit actors use, in order to protect customers from fraud.
The pilot phase of the project will involve five banks. The institutions will integrate data into existing sets to add to the strength of AML capabilities already in place. The platform will enable sharing of operational an experience-based data and develop machine learning solutions in transaction monitoring.
HKMA’s Regtech AMLab is a solid step in globally ongoing efforts to better the collaboration between the private and the public sector. Lately, the Hong Kong Monetary authority has been investigating the feasibility of launching a digital fiat, the e-HKD.