Seizing the Potential of AI to Detect Emerging Financial Crime Risks

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Issue #141 (Mar - Apr 2025)
	Cover Story Seizing the Potential of AI to Detect Emerging Financial Crime Risks The landscape of Financial Crime Compliance (FCC) is undergoing a significant transformation due to the accelerated adoption of Artificial Intelligence (AI). While many discussions centre around optimising existing processes, the real potential of AI lies in its ability to detect new and emerging FCC risks that traditional systems may overlook. As financial institutions grapple with increasingly sophisticated illicit activities, AI offers innovative solutions to enhance compliance frameworks and protect both customers and the integrity of the financial system.
	Thought Leaders Quality, Liquidity and Vibrancy: Keys to Sustaining the Attractiveness of Hong Kong’s Capital Markets With her first year as Chief Executive Officer of Hong Kong Exchanges and Clearing Limited (HKEX) completed in March 2025, Bonnie CHAN reflects on the challenges and successes of the past 12 months and outlines initiatives designed to enhance the city’s bourse as a favoured listing destination, while reinforcing Hong Kong’s status as one of the world’s pre-eminent international financial centres.
	China World Virtual (Digital) Banks in Hong Kong: Review and Assessing the Way Forward In August 2024, the Hong Kong Monetary Authority (HKMA) published a report on the review of virtual banks (VBs) in Hong Kong. Generally the report painted a positive picture of Hong Kong’s VBs. The scope of this review was prompted by four aims. They are: “(i) assess how well the three policy objectives of introducing VBs to Hong Kong have been delivered so far; (ii) review the level of market acceptance, business and financial performance, and user response of VBs since their inception; (iii) discuss the challenges facing VBs and the HKMA’s policy initiatives to support their development; and (iv) recommend the next steps for further development of the VB industry.”
	Fintech Where Innovation Meets Infrastructure As Artificial Intelligence (AI) competition intensifies between the US and Mainland China, it poses significant challenges to both nations and to the entire world. The race to be the leader in artificial intelligence extends from chips supply to data centres to efficiency gains.
	Change Horizons Forum Highlights Hong Kong’s Importance as an International Financial Centre Marking the first major finance and business event of 2025 in the Asia region, the Asian Financial Forum 2025 (AFF), under the theme “Powering the Next Growth Engine”, set the tone for discussions on global economic trends, emerging opportunities, and the role of technology and sustainability in driving future growth across the Asia region.
	GRC Corner Technology Risks and Rewards from Process Automation and Artificial Intelligence Banks are required to establish and maintain adequate systems and processes to monitor customer transactions. At one time, this was performed using a paperbased management system. This is no longer the case. Now, most transaction monitoring systems (TM systems) are automated, and banks are increasingly moving from rules-based robotic process automated (RPA) systems to artificial intelligence (AI) empowered systems.