Hong Kong’s efforts to tackle money laundering are under increasing strain due to a surge in the number of suspicious transactions being reported and concerns over a brain drain of investigators to the private sector.
The increase was revealed as the new leaders in Beijing try to make good on their anti-corruption pledges and international banks and financial institutions attempt to restore public faith after a string of dirty-money scandals.
Last year, the Joint Financial Intelligence Unit (JFIU) – a specialist police and customs anti-money-laundering group – received 23,282 reports of suspected illicit movements of cash from banks, accountancy firms, real estate companies and others.
The figure is almost double the 11,678 in 2003.
There was a noticeable acceleration after the 2009 global financial meltdown (see accompanying table). The rise looks set to continue after a new law against money laundering and terrorist financing was passed in April last year requiring banks to be even more vigilant.
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