Hong Kong Customs has announced the development of a tool aimed at tracking cryptocurrency transactions linked to money laundering. This was reported by SCMP.
The agency is collaborating with the University of Hong Kong to create the software.
Mario Wong Ho-yin, Assistant Commissioner for Intelligence and Investigation at the Customs and Excise Department, expressed the intention to expand cooperation with academics, financial and digital asset players, and law enforcement agencies across the region to combat criminal activities:
“The threats of money laundering are transnational and borderless, and no single agency can tackle this problem alone.”
According to the official, the number of such incidents involving cryptocurrencies is on the rise. The department reported 39 cases of laundering illegal proceeds since 2021, seven of which involved digital assets.
The total volume of detected crypto operations exceeded 9 billion Hong Kong dollars (~$1.14 billion). In most scenarios, this activity was disguised as trading.
Wong Ho-yin also noted that the department already uses forensic technology developed by the university to monitor the illegal online transfer of copyrighted works.
However, the assistant commissioner did not disclose detailed information about the AML tool, citing confidentiality.
Customs and the University of Hong Kong are organizing training for local and international law enforcement officers to enhance their investigative capabilities.
According to SCMP, the agency held a thematic seminar this week with participants from China, India, Iran, New Zealand, Thailand, and Singapore.
In April, the UN expressed concern about the threat of money laundering through illegal mining.