The Government published the Banking (Amendment) Bill 2025 in the Gazette on 28 March 2025. The Bill aims to improve the efficiency of crime detection and prevention in Hong Kong by facilitating secure information sharing among authorised institutions (AIs) under specified conditions.
The proposed legislation introduces a voluntary mechanism allowing AIs to share corporate and individual account information through secure platforms designated by the Hong Kong Monetary Authority (HKMA) when they detect suspected prohibited conduct, such as money laundering, terrorist financing, or the financing of weapons of mass destruction.
This Hong Kong Banking (Amendment) Bill 2025 is designed to help AIs and law enforcement agencies take swift action, intercept illicit funds earlier, and expedite intelligence gathering, ultimately protecting the public from fraud and related money laundering activities.
To support this mechanism, the Bill provides legal protection for AIs that disclose information in good faith and with reasonable care, provided they adhere to confidentiality requirements. The shared information must solely be used for identifying or preventing prohibited conduct.
AIs participating in the mechanism will also be required to implement robust control systems to safeguard the security of the shared information.
Commenting on the Bill, the Secretary for Financial Services and the Treasury, Christopher Hui, said,
“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. It 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.”
The Chief Executive of the HKMA, Eddie Yue, added,
“The proposed mechanism is a crucial step in our efforts to combat fraud and other financial crime. We 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.”
The HKMA conducted a public consultation on the proposed mechanism from January to March 2024, which revealed general support for the initiative. The HKMA also sought input from the Hong Kong Association of Banks and the Office of the Privacy Commissioner for Personal Data in refining the Bill’s proposals.
The said Hong Kong Banking (Amendment) Bill 2025 is expected to be introduced into the Legislative Council soon.
Source of image: Edited from Freepik