The Hong Kong Monetary Authority (HKMA) hosted a symposium on the Commercial Data Interchange (CDI), which is one of the major initiatives under its “Fintech 2025” strategy. CDI is a consent-based financial infrastructure that would enable more secure and efficient data flow between banks and sources of commercial data. Phase 1 of the Proof-of-Concept (PoC), which studied the technical feasibility of the CDI platform, was completed last year. Phase 2 of the PoC is underway, with a focus on using commercial data to facilitate alternative credit scoring by banks. A pilot launch of the CDI is expected toward the end of this year. During the symposium, HKMA also announced the launch of CDI Innovation Hub to facilitate the development and adoption of CDI. In a separate update, HKMA published the second issue of the Regtech Adoption Practice Guide, with focus on anti-money laundering/combating the financing of terrorism (AML/CFT).
This issue of the Regtech Adoption Practice Guide focuses on regtech solutions to assist AML/CFT efforts in the area of ongoing monitoring of customers. The guide provides an overview of regtech solutions for managing AML/ CFT efforts of an organization, specifically in the area of ongoing monitoring of customers. The guide outlines the common challenges observed regarding AML/CFT regtech adoption and shares information on how others have successfully addressed the challenges to successfully adopt AML/CFT regtech solutions. The guide will help banks assess whether they have the appropriate governance, controls, skills, infrastructure and underlying data to enable them to apply regtech solutions in the area of AML/CFT. The Practice Guide introduces commonly observed challenges and developments in the ongoing monitoring of customers and provides practical implementation guidelines to banks on the adoption of AML/CFT regtech solutions. It outlines a general framework for implementation within the AML/CFT context and shares use cases on adoption of regtech solutions to manage the ongoing monitoring of customers.
Keywords: Asia Pacific, Hong Kong, Banking, AML/CFT, Regtech, Commercial Data Interchange, Open Banking, HKMA
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