Hong Kong is intensifying its efforts to combat crypto-related money laundering by partnering with the University of Hong Kong (HKU) to develop advanced technology solutions. The initiative, announced on June 12 following a four-day anti-money laundering (AML) workshop, aims to enhance the tracking of virtual asset flows across blockchain networks.
Under this collaborative project, HKU engineers and researchers will work closely with Hong Kong Customs to design sophisticated tools capable of mapping and monitoring digital asset movements. The primary goal is to assist law enforcement in identifying suspicious patterns associated with money laundering and other illicit financial activities.
Assistant Commissioner Wong Ho-yin of Hong Kong Customs emphasized the growing concern of crypto-related crimes, which often transcend multiple jurisdictions, making it imperative for cross-sector collaboration. ‘No single agency can tackle this issue alone,’ Ho-yin noted, highlighting the need for expanded partnerships across financial, academic, and law enforcement sectors.
Professor David Srolovitz, Dean of Engineering at HKU, echoed this sentiment, stressing the importance of combining technical innovation with regulatory enforcement. ‘By bringing together experts from different fields, Hong Kong can better address the complex challenges of financial crime in the digital era,’ Srolovitz explained.
This development comes amid heightened global concerns about the misuse of digital assets for money laundering. According to a recent TRM Labs report, certain Chinese underground banks have become key facilitators of crypto-based money laundering, establishing links with global organized crime syndicates.
While countries like the United States are already utilizing advanced tools to monitor crypto-related crime, Hong Kong’s upcoming system could potentially encourage other regional countries to adopt similar approaches, thereby strengthening global efforts to combat financial crimes involving digital assets.
