SFC urges licensed institutions to detect and prevent potential layered trading activities used for money laundering

According to Foresight News, the Hong Kong Securities and Futures Commission issued a circular urging licensed corporations and virtual asset trading platforms to remain alert to suspicious fund transfers that show signs of hierarchical trading activities to prevent money laundering. The Securities and Futures Commission of Hong Kong pointed out in the circular that there is a continuing upward trend in criminals using licensed institutions to carry out hierarchical trading activities. Some people try to launder illegal gains involved in deception and fraud cases by concealing the source and whereabouts of illegal funds. Common warning signs of layered trading activity involve a chain of suspicious behavior, including frequent, rapid and organized deposits of funds into client accounts and subsequent withdrawals in the form of funds or virtual assets. At the same time, the Hong Kong Securities and Futures Commission reiterated in the circular the strict standards it expects of licensed institutions to detect and prevent layered trading activities.

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