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Hong Kong SFC Urges Licensed Institutions to Detect and Prevent Potential Layering Trading Activities Used for Money Laundering
Summary: According to reports from China Finance, the Hong Kong Securities and Futures Commission issued a circular today urging licensed corporations and virtual asset trading platforms to remain vigilant against suspicious fund transfers showing signs of layering trading activities to prevent money laundering. The SFC pointed out in the circular that there is a rising trend ...
According to reports from China Finance, the Hong Kong Securities and Futures Commission issued a circular today urging licensed corporations and virtual asset trading platforms to remain vigilant against suspicious fund transfers showing signs of layering trading activities to prevent money laundering.
The SFC pointed out in the circular that there is a rising trend of illicit individuals using licensed institutions for layering trading activities, with some attempting to launder proceeds from fraud and deception cases by disguising the source and destination of illegal funds. Common warning signs of layering trading activities involve a series of suspicious behaviors, including frequent, rapid, and organized deposits into client accounts followed by immediate withdrawals in the form of funds or virtual assets.
At the same time, the SFC reiterated in the circular its strict standards expected of licensed institutions in detecting and preventing layering trading activities.
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Link: Hong Kong SFC Urges Licensed Institutions to Detect and Prevent Potential Layering Trading Activities Used for Money Laundering [Copy]
