Hong Kong securities association chief questions proposed broker bank-account restrictions

According to Orange News, Chan Chi-wah said virtual asset-style bank account pre-approval rules should not be extended to traditional securities and urged a risk-based AML framework instead.

Summary

According to Orange News, Hong Kong Securities and Futures Professionals Association Chairman Chan Chi-wah criticized proposed pre-registration rules for broker client bank accounts, arguing that virtual asset-style pre-approval requirements should not be applied to traditional securities trading. He said the conventional securities market already uses same-name account checks and called for a risk-based anti-money laundering approach centered on beneficial ownership, suspicious transaction monitoring, and the use of big data and AI.

Terms & Concepts
  • AML: Anti-money laundering rules designed to detect and prevent illicit financial activity.
  • Beneficial ownership: The real person who ultimately owns or controls an account or asset, even if it is held in another name.
  • AI: Artificial intelligence systems used to analyze data and detect suspicious financial activity or unusual patterns.