Hong Kong Customs Develops AML Tool to Combat Money Laundering in Cryptocurrency Transactions

Hong Kong’s customs authorities are developing a tool aimed at tracking cryptocurrency transactions linked to money laundering, as reported by SCMP.

The department is collaborating with the University of Hong Kong to create this software.

Mario Wong Ho-yin, the Assistant Commissioner for Intelligence and Investigations at the Customs and Excise Department, expressed plans to enhance cooperation with academics, financial and digital asset professionals, and law enforcement agencies throughout the region to combat criminal activities. He stated, “The threats of money laundering are transnational and borderless in nature, and no agency can tackle this issue alone.”

According to the official, the number of incidents involving cryptocurrencies is on the rise. The department reported 39 cases of money laundering since 2021, seven of which involved digital assets.

The total value of identified cryptocurrency transactions surpassed HKD 9 billion (approximately $1.14 billion). In many instances, these activities were disguised as trading.

Wong Ho-yin also mentioned that the department is already utilizing forensic technology developed by the university to monitor the illegal online distribution of copyrighted works.

However, the Assistant Commissioner did not provide specific details about the AML tool, citing confidentiality concerns.

Customs and the University of Hong Kong are organizing training for local and international law enforcement personnel to enhance their investigative capabilities.

According to SCMP, the department recently held a themed seminar featuring representatives from China, India, Iran, New Zealand, Thailand, and Singapore.

It is worth noting that in April, the UN raised concerns about the risk of money laundering through illegal mining activities.