The Hong Kong Government has announced a significant step forward in combating financial crime with the introduction of the Banking (Amendment) Bill 2025.
According to GovHK, The Bill is set to enhance the efficiency of detecting and preventing crimes such as money laundering and terrorist financing through a new voluntary information-sharing mechanism among authorized institutions (AIs). This initiative, supervised by the Hong Kong Monetary Authority (HKMA), allows AIs to share sensitive corporate and individual account information on secure platforms when suspected illegal activities are detected.
This innovative mechanism aims to enable swift action by AIs and law enforcement agencies, facilitating quicker interception of illicit funds and enhancing intelligence gathering. It also promises to fortify public protection against fraud and money laundering, aligning with international practices to maintain Hong Kong’s stature as a leading international financial center. Additionally, the Bill will offer legal protection to AIs that disclose information in good faith, with reasonable care, and adhere to strict confidentiality requirements, ensuring that shared data is used solely for the purposes of detecting or preventing prohibited conduct.
Secretary for Financial Services and the Treasury, Mr Christopher Hui, highlighted the Bill’s role in addressing the growing global challenges of fraud and money laundering. “The proposed mechanism will enable us to better address the global trend of increasing fraud and associated money laundering activities, and is in line with international practice. It will help protect Hong Kong’s banking system from being exploited for carrying out prohibited conduct, and enhance Hong Kong’s status as an international financial centre,” he said.
Echoing these sentiments, HKMA Chief Executive Mr Eddie Yue emphasized the mechanism’s critical role. “The proposed mechanism is a crucial step in our efforts to combat fraud and other financial crime. We believe it will further enhance the ability of the banking sector and law enforcement agencies to detect and prevent illicit activities, thereby safeguarding the integrity of Hong Kong’s banking system,” Mr Yue stated.
The HKMA conducted a public consultation from January to March 2024, which revealed broad support for the initiative. The Authority also sought feedback from the Hong Kong Association of Banks and the Office of the Privacy Commissioner for Personal Data, refining the Bill’s proposals based on these consultations. The Bill is scheduled for its first reading in the Legislative Council on April 2.
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