HK AML crackdown could stifle fintech growth

Author: Ashley Lee | Published: 19 Jun 2015

The Hong Kong Monetary Authority’s plans to crack down on money laundering could have a negative effect on the city-state’s nascent financial technology industry.

Hong Kong implemented its Anti-Money Laundering Ordinance in 2012, and the HKMA has recently warned that it is now focussing on financial institutions’ internal controls.

In recent weeks Stuart McGlynn, the HKMA’s head of anti-money laundering and financial crime risk, has published a blog titled 'The Importance of Robust Anti-Money Laundering Controls’, and spoken to local press about future enforcement activity.

"This is the first time that we’ve seen the prospect of enforcement action stated so strongly, and there could be significant penalties at play," said Urszula McCormack, partner at King & Wood Mallesons in Hong Kong.

McGlynn’s blog listed the regulator’s options when taking action against financial institutions. 'We anticipate adding to these actions in the near future through the targeted use...


 

 

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