The Hong Kong Monetary Authority (HKMA) has published its report titled ‘AML/CFT Regtech: Case Studies and Insights’ discussing how regulatory technology (RegTech) can improve the efficacy of AML/CFT frameworks through real-life case studies. The purpose of this report is to guide banks that are thinking of or in the process of implementing AML/CFT RegTech.
HKMA’s report discusses case studies and insights of banks which have implemented RegTechs, such as network analytics and robotic process automation. It answers the common initial questions that banks have and recommends ways in which to begin the implementation of such technologies. The report also provides information about the major preparatory steps related to data, processes and network analytics. HKMA also provides recommendations on how banks should begin to identify and assess prospective RegTech providers, especially given that this field is swiftly evolving. Moreover, the report lists the skills and experience important for RegTech implementation teams to have. Lastly, the report describes the key performance indicators all banks must measure to assess their RegTech efforts.
This report is the first time the HKMA has compiled and published hands-on experiences of banks that have already adopted AML/CFT RegTech. Through this report, the HKMA is encouraging banks to learn from existing examples pertinent to their specific situation to make the right RegTech choices.
Source: Hong Kong Monetary Authority