Hong Kong's Securities and Futures Commission Urges Licensed Institutions to Detect and Prevent Potential Layering Transactions for Anti-Money Laundering

On November 17th, according to the Securities and Futures Commission (SFC), a letter was issued today to licensed corporations and virtual asset trading platforms. The SFC is urging them to remain vigilant against suspicious fund transfers that indicate layering trading activities in order to prevent money laundering. In the letter, the SFC pointed out that there is a growing trend of illegal actors using licensed institutions to conduct layering trading activities. Some are trying to launder the proceeds from fraud and scam cases by disguising the source and destination of illegal funds. Common warning signs of layering trading activities involve a series of suspicious behaviors, such as frequent, rapid, and organized deposits into customer accounts followed by immediate withdrawals in the form of funds or virtual assets. At the same time, the SFC reiterated in the letter its strict standards for licensed institutions in detecting and preventing layering trading activities.