Cyberport and the Hong Kong Monetary Authority (HKMA) recently co-hosted the third Anti-Money Laundering (AML) Regtech Lab (AMLab 3). The AMLab series strengthens banks’ capabilities to protect customers from fraud and financial crime losses by encouraging innovation and Regtech adoption, providing the most relevant knowledge and unique access to industry experts and service providers.
AMLab 3 builds on the AMLab 1, using network analytics to combat fraud risk and reduce losses from scams using mule account networks. AMLab 3 shares good practices and provides a platform for banks as well as data and technology experts to collaborate using synthetic data to demonstrate testing of network diagrams, and thus helping fast track implementation at lower costs.
AMLab 3 is also followed by Regtech Connect, an initiative introduced in July this year, in which Cyberport technology companies demonstrate relevant Regtech tools and services, providing a collaborative platform for open discussions with participating banks. In the face of rising levels of online fraud and financial crime, the HKMA has transformed the way it works with banks to shape the direction of innovation in AML work.
About 60% of retail banks are now deploying network analytics, more than twice as many as three years ago, including banks which participated in AMLab 1 and which have partnered with Cyberport community companies. In the first nine months of 2022, retail banks increased their identification and reporting of suspicious accounts and networks by 127% compared to a year ago, leading to an increase of 166% in the amount of criminal proceeds restrained or confiscated by law enforcement agencies.
Cyberport will continue joining hands with HKMA to host more AMLabs in support of the “Fintech 2025” strategy to safeguard stability and integrity of the banking system.
