Hong Kong SFC Issues Circular on Layering Transaction Detection for Licensed Entities

Hong Kong's Securities and Futures Commission issued a circular on Nov. 17 urging licensed corporations and virtual asset trading platforms to remain vigilant against suspicious fund transfers showing signs of layering activities, Zhitong Finance reports. The SFC noted a rising trend of criminals exploiting licensed institutions for layering transactions to obscure the origins and destinations of illegal proceeds from fraud cases. Common warning signs include frequent, rapid, and organized deposits into client accounts followed by immediate withdrawals in cash or virtual assets.