Hong Kong stops his fight against crypto-related money laundering by working together with the University of Hong Kong (HKU) on technology-driven solutions, including improved tracking of virtual activa streams.
The new effort was unveiled in a government rack On June 12, after a four-day workshop aimed at improving anti-money washing strategies (AML).
Cooperation effort
According to the project, engineers and researchers from HKU will collaborate with Hong Kong Customs to design tools that are able to map and monitor the movement of digital assets on blockchain networks.
The tool is intended to help law enforcement to identify suspicious patterns that are linked to money laundering and other illegal financial activities.
Assistant commissioner Wong Ho-Yin of Hong Kong Douane emphasized that crypto-related crimes are increasing. He noted that because these crimes often include multiple areas of law, no agency can only tackle the problem.
In view of this, Ho-Yin emphasized the need to expand partnerships in the financial, academic and law enforcement sector to tackle these cross-border money laundering.
Professor David Srolovitz, HKU’s Dean of Engineering, repeated this and emphasized the importance of combining technical innovation with enforcement of regulations. He said that Hong Kong brings together experts from different areas, the complex challenges of financial crime in the digital age better.
Global concerns about money laundering
The urge of Hong Kong to strengthen the supervision of the crypto comes in the midst of broader global worries. The limitless nature of digital assets makes them an attractive tool for criminals who want to move funds discreetly.
According to a recent report by TRM Labs, some Chinese underground banks, which operate through informal channels known as Fei Qian, have become important facilitators of crypto-based money laundering.
These groups have put close ties with global organized crime syndicates, including Mexican drug cartels. Their services enable rich Chinese persons to circumvent domestic capital controls and enable foreign criminals to move or repatriate illegal funds.
Although jurisdictions such as the United States already use advanced tools to control crypto-related crime, the upcoming system of Hong Kong could encourage other countries in the region to adopt similar approaches.
