SFC hosts forum to encourage responsible Regtech adoption for anti-money laundering and counter-financing of terrorism

The Securities and Futures Commission (SFC) concluded its forum to encourage the financial services sector to embrace regulatory technology, Regtech, in combatting money laundering and terrorist financing.

More than 300 participants – including government officials, industry representatives and experts – attended today’s “SFC AML/CFT Regtech Forum 2024”. They engaged in dynamic, interactive and in-depth discussions over the latest developments and adoption trends in Regtech, encompassing its practical application in legal and regulatory compliance for anti-money laundering and counter-financing of terrorism as well as risk management.

In her opening remarks, Ms Julia Leung, the Chief Executive Officer (CEO) of the SFC, urged the financial industry to adopt Regtech responsibly and more widely. She also unveiled the publication of the SFC’s Report on the Adoption of Regtech for Anti-Money Laundering and Counter-Financing of Terrorism, while citing it to highlight the progress, key drivers and illustrative use cases in Regtech adoption.

“It is more affordable than you think, especially compared to the heavy cost of overlooking money laundering risks,” Ms Leung said. “By following the Regtech adoption roadmap, we can make compliance more efficient and effective, which is sure to strengthen the integrity of our financial system.”

The full-day event at the Hong Kong Convention and Exhibition Centre also featured a keynote address by Mr Joseph Chan, Acting Secretary for Financial Services and the Treasury, who called upon the financial industry to facilitate compliance through Regtech, emphasising that with innovation in artificial intelligence and Fintech and collaborative efforts, Hong Kong can build a competitive, resilient and responsible financial ecosystem.

In another highlight of the forum, Dr Eric Yip, the SFC’s Executive Director of Intermediaries, hosted a panel session with senior representatives from the Hong Kong Customs and Excise Department and the financial industry. They shared valuable insights into the emerging trends of money laundering risks and discussed the potential of utilising technologies to enhance capabilities and address these risks effectively. Dr Yip emphasised the transformative power of Regtech in analysing vast amounts of data, which enables the prompt and effective detection and management of risks related to money laundering and terrorist financing.

(From left to right) SFC’s Executive Director of Intermediaries Dr Eric Yip, SFC’s CEO Ms Julia Leung, Acting Secretary for Financial Services and the Treasury Mr Joseph Chan, SFC’s Senior Director of Intermediaries Supervision Mr Keith Choy, and SFC’s Associate Director and Head of AML, Intermediaries Supervision, Ms Joyce Pang.