HKMA advances proposal on crime detection data sharing among banks following positive consultation feedback

30th September 2024 – (Hong Kong) The Hong Kong Monetary Authority (HKMA) today disclosed the outcomes of its public consultation regarding a proposed framework that would allow the sharing of information among Authorized Institutions (AIs) to enhance the prevention and detection of financial crimes , including fraud, money laundering, and terrorist financing.

Launched on 23rd January, 2024, the consultation sought to gather insights from the banking sector, professional bodies, public sector entities, law enforcement, and the public on the viability of facilitating data sharing on customer accounts. The initiative aims to reinforce the resilience of the banking system against potential abuse and criminal activities.

The feedback received has been largely supportive, with a total of 18 detailed submissions from various stakeholders, outlining broad endorsement of the proposal’s objectives. Notably, the Office of the Privacy Commissioner for Personal Data (PCPD) contributed significant insights, ensuring that personal data privacy is maintained in accordance with the Personal Data (Privacy) Ordinance (Cap. 486) (PDPO).

In response to the feedback, the HKMA has confirmed that it will proceed with drafting necessary legislative amendments. These amendments will form an integral part of a broader review of the Banking Ordinance aimed at strengthening the legal framework for data sharing among financial institutions.

The HKMA also plans to continue its dialogue with stakeholders to refine the implementation details of the proposal. This ongoing engagement will focus on practical aspects of the initiative, such as the voluntary nature of information sharing, the scope of data to be shared, and ensuring compliance with existing data protection laws.