The Hong Kong Securities and Futures Commission urges licensed institutions to detect and prevent potential layered transactions used for money laundering

According to Zhitong Finance, the Hong Kong Securities and Futures Commission (SFC) issued a circular today urging licensed corporations and virtual asset trading platforms to remain vigilant against suspicious fund transfers that show signs of layering activities, in order to prevent money laundering.

The SFC pointed out in the circular that there is a continuing trend of criminals using licensed institutions for layering activities. Some individuals attempt to disguise the sources and destinations of illegal funds, laundering proceeds related to fraud and deception cases. Common warning signs of layering activities involve a series of suspicious behaviors, including frequent, rapid, and organized deposits of funds into client accounts, followed by immediate withdrawals in the form of funds or virtual assets.

At the same time, the SFC reiterated its strict standards expected of licensed institutions in detecting and preventing layering activities.