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Hong Kong Monetary Authority: Large-scale digital fraud may undermine public confidence in using new digital financial services

Hong Kong Monetary Authority: Large-scale digital fraud may undermine public confidence in using new digital financial services

CointimeCointime2024/01/24 03:41
By:Cointime

The Hong Kong Monetary Authority has released a public consultation paper seeking views on proposals to allow institutions to exchange customer account information for the prevention or detection of financial crimes. The consultation period runs from today until March 29. Norman Chan, Chief Executive of the HKMA, said that global fraud and financial crime risks are increasing rapidly. Criminals take advantage of differences in information between banks, and the transfer and concealment of illegal funds through the financial system is on the rise. Effective information exchange between banks, regulators and law enforcement agencies can play a key role in combating fraud and financial crimes, and protecting consumers of financial services.

The HKMA believes that large-scale digital fraud may undermine public confidence in using new digital financial services. Information exchange is an internationally recognized tool for combating financial crime. The authorities pointed out that the threat of criminals using the financial system to transfer illegal funds still exists, and there is a need for further support for advanced technology and analytical techniques to more effectively detect and prevent fraud and puppet account networks, and intercept illegal funds.

The paper invites industry and public stakeholders to provide views on various aspects, including revising relevant legislation to provide legal protection for recognized institutions, and mechanisms to protect data privacy and confidential customer information.

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