A woman walks past the entrance to the Hong Kong Monetary Authority in Central, Hong Kong, on April 11, 2023. (CALVIN NG / CHINA DAILY)

HONG KONG – The de facto central bank, banking association and police force of Hong Kong jointly launched a bank-to-bank information sharing platform on Tuesday to increase banks' ability to share information to detect and disrupt fraud and mule account networks more effectively.

The Financial Intelligence Evaluation Sharing Tool (FINEST) will give the public greater protection from fraud and financial crimes and enhance the integrity of the banking system, the Hong Kong Monetary Authority (HKMA) said in a statement on Tuesday.

The Hong Kong Association of Banks (HKAB) developed the initiative with guidance from the HKMA, and support from the Hong Kong Police Force (HKPF) for a cyber-secured platform to speed up the bank-to-bank sharing.

READ MORE: HK Customs busts $92m money laundering case, arrests 23

Bank-to-bank information sharing, when combined with data analytics, can be a game changer in the fight against abuse of our banking system for fraud.

Eddie Yue Wai-man, Chief Executive, HKMA

“This collaborative platform demonstrates that banks, the HKMA and the HKPF share a common purpose to turn the tables on fraud and financial crime, with a view to offering better protection to the public,” said Chief Executive of the HKMA Eddie Yue Wai-man.

“Bank-to-bank information sharing, when combined with data analytics, can be a game changer in the fight against abuse of our banking system for fraud.”

According to the HKMA, the platform will be rolled out in phases. 

The pilot phase involves five domestic systemically important Authorized Institutions and focuses on sharing of information related to corporates suspected to be involved in fraud-related money laundering activities. 

Based on the experience gained from the pilot phase and any new issues addressed, FINEST will be expanded by phases in future, to include more participating banks and cover personal accounts as well as share other financial crime-related information such as trade-based money laundering, said the HKMA. 

The HKMA identified the project as its 2023 work priority as well as one of the five joint anti-deception initiatives announced recently by the HKMA and the HKPF. 

ALSO READ: 9 held in $767m laundering customs bust, HK's biggest

“Enhancing the ability to share information directly among banks is internationally recognized as an effective means to help manage and mitigate increasingly sophisticated fraud and money laundering risks," reads the HKMA statement.

In a separate statement, the HKPF said FINEST will enable better coordination among law enforcement agencies and banks in fighting financial crimes, resulting in higher success rates in identifying and combating criminal activities. 

“In addition, FINEST will strengthen intelligence sharing, bolster due diligence measures and enhance industry-wide co-operation,” said an HKPF spokesman. 

Starting from late June, Bank of China (Hong Kong) Limited, Standard Chartered Bank (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, Hang Seng Bank Limited and Industrial and Commercial Bank of China (Asia) Limited) joined FINEST first, according to the statement. 

ALSO READ: Officers smash HK$3.5b money-laundering ring, detain 8

Other banks will join in phases with “the ultimate goal to achieve the widest possible coverage of Hong Kong’s banking sector”, it said.

The collaboration underscores the importance of a united approach to fight financial crime and shows the HKPF, the HKMA and the banking industry are stepping up their efforts in partnership to combat criminal threats and enhance Hong Kong’s reputation as an international financial center, it added.