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Hong Kong has become the latest jurisdiction to open up opportunities for financial institutions to share intelligence in a bid to combat fraud and money laundering from being able to take place.
The Hong Kong government has added the Banking (Amendment) Bill 2025 to its legal gazette, proposing a new framework for authorised institutions (AIs) to share intelligence on suspected financial crimes.
The legislation, on March 28, 2025, aims to enhance the detection and prevention of fraud, money laundering and terrorist financing.
It echoes similar initiatives taking place globally, such as Singapore鈥檚 COSMIC platform, which allows certain banks to share information via a government-backed platform.
"The proposed mechanism will enable us to better address the global trend of increasing fraud and associated money laundering activities, and is in line with international practice,鈥 said Christopher Hui, financial services secretary.
Hui added that 鈥渋t will help protect Hong Kong's banking system from being exploited for carrying out prohibited conduct, and enhance Hong Kong's status as an international financial centre鈥.
Intercepting fraudulent transactions
Under the proposed bill, banks will be able to voluntarily share account information, both corporate and individual, via secure platforms that will be designated by the Hong Kong Monetary Authority (HKMA).
The mechanism is designed to enable faster action against illicit activities, and so help law enforcement and financial institutions intercept fraudulent transactions more efficiently.
To protect participating institutions, the bill also includes legal safeguards for institutions that disclose information in good faith, with reasonable care, and in compliance with confidentiality requirements.
Information that is shared under the mechanism can be used only to detect or prevent prohibited activities, and banks must implement strong controls so that data security is guaranteed.
The bill follows a public consultation conducted by the HKMA from January to March 2024, which found broad support for the initiative.
The regulator also consulted key stakeholders, including the Hong Kong Association of Banks and the Office of the Privacy Commissioner for Personal Data.
The bill is set to be introduced in the Legislative Council for its first reading on April 2.
"The proposed mechanism is a crucial step in our efforts to combat fraud and other financial crime,鈥 said Eddie Yue, HKMA CEO.
鈥淲e believe it will further enhance the ability of the banking sector and law enforcement agencies to detect and prevent illicit activities, thereby safeguarding the integrity of Hong Kong's banking system."
