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HKMA, HKPF, and HKAB Unveil Strong Measures to Combat Money Laundering and Mule Accounts

HKMA HKPF HKAB money laundering mule accounts

The Hong Kong Monetary Authority (HKMA), the Hong Kong Police Force (HKPF), and The Hong Kong Association of Banks (HKAB) have teamed up to introduce a series of groundbreaking measures aimed at tackling fraud and money laundering in Hong Kong. These measures, announced on April 10, 2025, aim to curb the growing scale and sophistication of financial crime, including fraud, deception, and mule account networks. As part of their strategy, the three agencies are enhancing their collaborative efforts to address the increasing threat posed by criminals using advanced technologies to exploit individuals and institutions at an alarming pace.

Fraud cases in Hong Kong have been steadily rising in both scale and complexity. The introduction of digital platforms and online banking has only fueled this trend, enabling criminals to reach more victims and commit fraud on a larger scale. According to reports, a staggering 44,480 deception cases were recorded in 2024, marking an 11.7% increase from the previous year. Additionally, 10,496 individuals were arrested for involvement in various forms of deception and money laundering offenses. This includes approximately 7,700 arrests related to the use of bank accounts for illicit money laundering purposes—a rise of 13.6% from 2023.

The new measures unveiled by the HKMA, HKPF, and HKAB are designed to disrupt criminal activities and enhance the ability of banks and authorities to detect, prevent, and respond to these types of financial crimes. Below, we will explore the key strategies being implemented.

One of the critical measures introduced by the authorities is the expanded use of Scameter data. This initiative is aimed at enabling banks to identify suspicious accounts more effectively and alert customers at risk of being targeted by fraudsters. By combining Scameter data with network analytics, banks will be able to identify additional mule account networks, which are used by criminals to launder illicit funds. The HKMA and HKPF believe that this enhanced data-sharing system will significantly improve the ability to disrupt financial crime and protect consumers from fraud.

The expansion of Scameter data will also allow banks to cross-reference their databases with broader information to spot trends and patterns related to fraudulent activities. This can help detect the movement of illicit funds through mule accounts and prevent further financial damage. By using these data-driven insights, banks can quickly identify and freeze suspicious accounts, reducing the risk of money laundering and fraud spreading further.

To bolster the collective effort against financial crime, the HKMA has introduced legislative amendments to enable banks to share information about suspicious activities more efficiently. When banks detect potentially illicit activity—such as money laundering or terrorist financing—they will be able to exchange information with other banks to help identify and prevent further criminal conduct.

Currently, ten banks in Hong Kong are already utilizing the Financial Intelligence Evaluation Sharing Tool (FINEST) platform, which is operated by the HKPF. However, to accommodate the growing need for more comprehensive information sharing, an upgraded version of the platform will be launched by the end of the year. This new system is expected to improve communication among financial institutions and help create a more effective network for detecting and preventing financial crime.

Bank-to-bank information sharing will not only assist in identifying mule accounts but also provide valuable insights into the activities of criminal networks. By collaborating in this way, banks can work together to combat financial crime more efficiently, protecting customers and the wider economy.

The HKMA is also focusing on strengthening the internal systems of banks to prevent fraud and money laundering. As part of their strategy, the HKMA has shared best practices with banks to improve their anti-fraud measures. These practices include advanced techniques for detecting fraud and managing risk, as well as protocols for preventing the misuse of customer accounts.

By sharing successful anti-fraud strategies, the HKMA aims to raise the standard of financial crime prevention across the banking industry. This knowledge-sharing initiative will help banks refine their systems and ensure they are fully equipped to handle emerging threats. Additionally, the HKMA will collaborate with banks to conduct regular thematic reviews, ensuring that systems remain up to date and effective in detecting fraud.

The thematic reviews will focus on areas such as the detection of mule account networks, the use of artificial intelligence for fraud detection, and the integration of data analytics into risk management frameworks. By working closely with the banking sector, the HKMA hopes to create a robust and adaptive environment for preventing financial crime.

Increased Publicity and Education on Fraud Prevention

Another key measure being introduced is an enhanced effort to educate the public about the dangers of fraud and the importance of not lending or selling their bank accounts. The HKMA, HKPF, and the banking industry are working together to launch a series of educational campaigns aimed at raising awareness among consumers about the risks associated with mule accounts.

The public will be reminded of the severe consequences of lending or selling their bank accounts to criminals, as this can lead to prosecution and imprisonment for money laundering offenses. In 2024, the number of individuals prosecuted for money laundering offenses increased by 2.3 times compared to 2023, underscoring the seriousness of the issue. The authorities have already taken steps to apply enhanced sentencing for those involved in these crimes, with sentences for mule account holders increasing by 13% to 33% as of early April 2025.

Publicity efforts will include outreach activities targeting high-risk groups, as well as partnerships with banks and other stakeholders to reinforce the message that lending or selling one’s bank account is a criminal offense. The formation of the Anti-fraud Education Taskforce by the HKAB, consisting of 18 major banks, will play a crucial role in coordinating these efforts.

Conclusion: Strengthening the Detection and Prevention of Financial Crime

The measures introduced by the HKMA, HKPF, and the HKAB represent a comprehensive and collaborative effort to tackle fraud and money laundering in Hong Kong. By leveraging technology, improving information sharing, and increasing public awareness, these agencies are taking decisive action to disrupt criminal activities and protect consumers. While the fight against financial crime is ongoing, these new initiatives signal a significant step forward in safeguarding Hong Kong’s financial system and ensuring that it remains resilient against emerging threats.