Financial Crime Prevention and Anti Money Laundering

Hong Kong has strike laws and regulation when it comes to Financial crimes such as money laundering and fraud. Money Laundering is a process which conceals or discuses the true nature of property such as fiat cash or Bitcoin.

What is Financial Crime

Financial crime is a crime specifically committed against property such as Money, personal assets and Bitcoin. In order to protect yourself against financial crime when handling Bitcoin, make sure you purchase Bitcoin from trusted sources and ask about the source of funds. Sophisticated tracing tools such as Chainalysis can be used to detect stolen or fraudulent funds, such as money stolen by ponzi schemes like Plus Token.

Bitcoin Anti-money laundering and KYC procedure

Due to the anomalous nature of Bitcoin, strict Know-your-customer (KYC) policies are adopted by Hong Kong Bitcoin Exchanges and Over-the-Counter (OTC) desks. To ensure proof of funds, purchasers of Bitcoin are often required to provide official documents such as:

  • Official Identification (such as HKID card or Passports)
  • Proof of Address
  • Proof of Income
  • Bank account statements