Hong Kong Customs Partners with University to Track Crypto Money Laundering

Hong Kong Customs and Excise Department has announced a partnership with the University of Hong Kong to develop a digital tool aimed at tracking cryptocurrency transactions involved in suspected money laundering activities. This initiative comes as part of a broader effort to combat increasingly complex and borderless financial crimes.

Assistant Commissioner Mario Wong Ho-yin highlighted the transnational nature of these threats, emphasizing the need for collaboration among academics, finance professionals, and law enforcement agencies. During a media briefing, Wong stated that no single agency can effectively address this problem alone, underscoring the importance of collective efforts in tackling money laundering.

The digital tool, whose operational details remain confidential, is expected to enhance the department's capabilities in monitoring and investigating cryptocurrency-related financial crimes. This development follows a rise in crypto-related money laundering cases in the region, with 39 major cases recorded between 2021 and May 2025, seven of which involved cryptocurrencies.

One notable case involved over 1,000 suspicious transactions worth 1.8 billion Hong Kong dollars (around $229 million), spanning five companies and 18 local bank accounts. Three individuals were arrested, with two accused of moving 760 million Hong Kong dollars through a crypto platform. This case exemplifies the sophisticated methods used in trade-based money laundering operations, where illicit funds are disguised as routine transactions.

To further strengthen cross-border cooperation, the department and university hosted a three-day workshop this week. The event brought together law enforcement and consulate staff from eight jurisdictions, including China, India, Iran, New Zealand, Thailand and Singapore. The workshop aimed to enhance collaboration and share best practices in combating digital financial crimes.

This initiative by Hong Kong Customs and Excise Department reflects a growing global trend of leveraging technology to combat financial crimes. As cryptocurrencies become more prevalent, the need for advanced tracking tools and international cooperation becomes increasingly crucial. The development of this digital tool is a significant step forward in the region's efforts to safeguard its financial system against money laundering threats.