The HKMA publishes AML/CFT Regtech: Case Studies and Insights

The HKMA publishes AML/CFT Regtech: Case Studies and Insights

The HKMA publishes AML/CFT Regtech: Case Studies and Insights 1400 786 Hauzen

On 21 January 2021, the Hong Kong Monetary Authority (the “HKMA”) published a report entitled “AML/CFT Regtech: Case Studies and Insights” (the “Report”) highlighting the opportunities that Regulatory Technology (“Regtech”) offers to transform the effectiveness and efficiency of Anti-Money Laundering and Counter-Financing of Terrorism (“AML/CFT”) efforts, and sharing end-to-end approaches which worked in real-life examples.

This Report details case studies and insights of banks which have implemented technologies, including network analytics and robotic process automation. The purpose of this Report is to give banks a practical guidance at various stages of AML/CFT Regtech adoption.

Key observations of the Report include:

  • Stakeholder Buy In & Executive Support – Ensuring management expectations were aligned to the proposed approach have helped many early adopters build credibility with management, especially for more complex and larger scale deployments of AML/CFT Regtech.
  • Cross Functional & Interdisciplinary Teams – Diversity broadens perspectives and enables banks to comprehensively evaluate third party Regtech vendors, identify any additional benefits/uses for a solution, anticipate and address potential barriers to implementation, and secure the buy in.
  • Forums to Exchange Views & Experiences – Many early adopters, especially for institutions with group operations spanning multiple markets, found creating forums to share and exchange ideas and experiences had accelerated AML/CFT Regtech adoption.
  • Focus on Data Readiness – It is important to start discussions with data owners early and planning ahead.
  • Working with Third Parties – When assessing opportunities to partner with third parties, early adopters have looked at compatibility, scale and sustainability.
  • Considering a Holistic Definition of Value – Many early adopters of AML/CFT Regtech look beyond immediate financial and operational benefits and include the people impact through experiential learning and cross functional collaboration, the customer impact, and adaptability in terms of further uses.
Back to top
Privacy Preferences

When you visit our website, it may store information through your browser from specific services, usually in the form of cookies. Here you can change your Privacy preferences. It is worth noting that blocking some types of cookies may impact your experience on our website and the services we are able to offer.

Click to enable/disable Google Analytics tracking code.
Click to enable/disable Google Fonts.
Click to enable/disable Google Maps.
Click to enable/disable video embeds.
Our website uses cookies, mainly from 3rd party services. Define your Privacy Preferences and/or agree to our use of cookies.