The Hong Kong Securities and Futures Commission issued a circular urging licensed corporations and virtual asset trading platforms to stay vigilant against suspicious fund flows indicative of layering activity in money laundering, citing a rising trend of bad actors exploiting licensed firms to launder illicit proceeds from deception and scam cases. The circular highlights red flags such as frequent, swift and structured deposits into client accounts followed by immediate withdrawals in the form of funds or virtual assets, and reiterates the SFC’s expectation of robust standards to detect and prevent layering. Coordination has been stepped up with the Hong Kong Police Force, including the Anti-Deception Coordination Centre and the Joint Financial Intelligence Unit, and some licensed firms have facilitated the ADCC’s 24/7 stop-payment mechanism since September 2025, with around one-third of known scam-related proceeds that flowed to licensed firms intercepted over the past two months. The SFC also hosted a webinar on supervisory observations and regulatory responses, with an English session scheduled for 18 November 2025, and flagged potential regulatory or enforcement action for AML/CFT failings, including licensing conditions, business limitations, or disciplinary sanctions up to licence suspension or revocation.

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