AML/CFT Regtech: Case Studies and Insights--> February 3, 2021

The Hong Kong Monetary Authority (HKMA) published today (21 January
2021) a report titled “AML/CFT Regtech: Case Studies and Insights”
highlighting the opportunities that Regtech offers to transform the
effectiveness and efficiency of Anti-Money Laundering and
Counter-Financing of Terrorism (AML/CFT) efforts, and sharing end-to-end
approaches which worked in real-life examples.

Following the first AML/CFT RegTech Forum in November 20191,
the HKMA has collaborated with an international consulting firm to
follow up progress made by three breakout groups of banks. This report
details case studies and insights of banks which have implemented
technologies, including network analytics and robotic process automation
(RPA), and is designed to provide practical guidance to banks at
various stages of AML/CFT Regtech adoption.

Key takeaways include:

  • Getting started – common initial questions; possible ways to begin; good practices.
  • Data and process readiness – key preparatory steps regarding data, processes and the use of network analytics.
  • Third-party vendor relationships – how to identify and evaluate potential Regtech providers in a fast-developing field.
  • People, talent and culture – necessary knowledge, skills and experience in implementation teams and the often misunderstood role of data scientists.
  • Performance metrics and indicators – what success looks like.

Mr Arthur Yuen, Deputy Chief Executive of the HKMA, said, “This
report is the first time that we share comprehensive and practical,
hands-on experience from banks that have actually implemented AML/CFT
Regtech. The case studies show the importance of early and continuing
stakeholder buy-in; interdisciplinary adoption teams; forums to share
views and experience; and being able to track and measure success. The
HKMA encourages banks to draw reference from the examples and insights
that are relevant to their particular circumstances to inform the
appropriate Regtech adoption journey. We will continue to have regard to
these developments in our supervisory engagement with the industry.”

The report can be found by doubling click the image link.

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