Hong Kong Customs to Develop AML Tool for Crypto Transaction Monitoring

Hong Kong Customs has announced that it is developing a tool aimed at tracking cryptocurrency transactions associated with money laundering. This information comes from a report by SCMP.

To create this software, the agency is collaborating with the University of Hong Kong.

Mario Wong Ho-yin, Assistant Commissioner for Intelligence and Investigations in the Customs and Excise Department, stated the intention to enhance cooperation with academics, financial and digital asset stakeholders, as well as law enforcement agencies across the region to combat criminal activities. He remarked, «The threats of money laundering are transnational and lack borders, and no single 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 from 2021, with seven involving digital assets.

The total volume of identified crypto transactions exceeded HKD 9 billion (approximately USD 1.14 billion). In most 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 illegal online distribution of copyrighted materials.

However, the assistant commissioner refrained from disclosing specific details about the AML tool, citing confidentiality concerns.

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

As reported by SCMP, this week, the agency held a workshop that included representatives from China, India, Iran, New Zealand, Thailand, and Singapore.

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