Hong Kong urging banks to use AI to block illegal gambling payments
Banks and e-wallet providers are expected to strengthen real-time monitoring as authorities target third-party accounts used to move betting funds.
Hong Kong.- Financial institutions are being urged to integrate artificial intelligence into their systems to intercept transaction flows linked to illegal online gambling. That’s according to a response from Secretary for Financial Services and the Treasury, Christopher Hui, to a question raised at the Legislative Council.
Hui said the Hong Kong Monetary Authority and the Securities and Futures Commission are working with banks, e-wallet providers, and licensed virtual asset platforms. By leveraging AI models, regulated entities are expected to identify suspicious transaction patterns in real time, issue immediate risk alerts, and freeze accounts involved in illicit operations.
A point of concern is the use of third-party “stooge accounts” to handle player deposits and syndicate payouts. Hui warned that selling, lending, or operating bank or e-wallet accounts for illicit betting funds constitutes a serious money laundering offence under the Organised and Serious Crimes Ordinance. Under existing directives, financial operators must swiftly suspend or freeze any accounts flagged by law enforcement agencies.
To keep pace with evolving criminal methods, authorities are relying on the Fraud and Money Laundering Intelligence Taskforce to share real-time intelligence, emerging payment typologies, and operational red flags across the financial sector.
Hui also reaffirmed the legal consequences for both operators and consumers under the Gambling Ordinance. Anyone placing a bet with an illegal bookmaker faces up to nine months in prison and a HKD50,000 (US$6,300) fine. Individuals or affiliates promoting illegal betting operations face severe penalties of up to seven years in prison and fines reaching HK5m (US$637,000).
