Money laundering investigations in Hong Kong up sharply following 2012 law

Police in Hong Kong received 33,000 reports of suspicious financial transactions last year - a 12-year high and a 40 per cent rise from 2012 - after Hong Kong tightened its money-laundering laws.

Police have initiated more investigations since the new legislation went into effect in the middle of 2012, and spend an average of 18 months on each case.

Of the thousands of new reports, the Financial Investigations Division of the Narcotics Bureau initiated 349 investigations in 2013, up 41.9 per cent from the 246 in 2012.

However, the increased enforcement comes alongside concerns that the city's efforts to tackle money laundering are being undermined by a "brain drain" as experienced investigators are lured to more profitable careers in the private sector.

Gloria Yu Yin-ching, superintendent of the Narcotics Bureau's financial investigation unit, denied her team lacked new talent. She said the anti-money laundering team had recruited 40 new members since 2008.

The total value of assets frozen by Hong Kong police in money-laundering investigations rose 13.7 per cent to HK$873 million in 2013, from HK$768 million in 2012, according to Hong Kong police data. In 2011, police froze HK$731 million worth of assets.