Rise in reports of dirty money causes alarm
Surge in suspected laundering cases after 2009 crash comes amid concerns over 'brain drain' of top police investigators to the private sector
Hong Kong's efforts to tackle money laundering are under increasing strain due to a surge in the number of suspicious transactions being reported and concerns over a brain drain of investigators to the private sector.
The increase was revealed as the new leaders in Beijing try to make good on their anti-corruption pledges and international banks and financial institutions attempt to restore public faith after a string of dirty-money scandals.
Last year, the Joint Financial Intelligence Unit (JFIU) - a specialist police and customs anti-money-laundering group - received 23,282 reports of suspected illicit movements of cash from banks, accountancy firms, real estate companies and others.
The figure is almost double the 11,678 in 2003.
There was a noticeable acceleration after the 2009 global financial meltdown (see accompanying table). The rise looks set to continue after a new law against money laundering and terrorist financing was passed in April last year requiring banks to be even more vigilant.
Several informed sources have told the that the police force is struggling to retain expertise as officers switch to higher-paying jobs in the private sector, where their skills are in growing demand.
