Hong Kong: Adopted HKMA Guideline on the Use of Artificial Intelligence for Monitoring of Suspicious Activities

On 9 September 2024, the Hong Kong Monetary Authority (HKMA) issued a Guideline on the Use of Artificial Intelligence for Monitoring of Suspicious Activities, encouraging authorised institutions in the financial sector to adopt artificial intelligence (AI) systems for monitoring suspicious activities related to money laundering and terrorist financing. The Guideline points out that monitoring systems using AI can take into account a broad range of contextual information and can be more effective and efficient than established rules-based transaction monitoring systems. As a result, HKMA requests that authorised institutions give due consideration to adopting such systems and carry out a feasibility study and submit an AI implementation plan by March 2025.