Exclusive | Hong Kong ATM users likely to get face scans in move to deter financial crime, source says

Thousands of machines across city expected to be replaced as authorities step up fight against laundering, financial crime and terror funding

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The ATM overhaul will see some 3,250 machines equipped with new face scan technology. Photo: AFP/ Philippe Lopez

Published: 8:03am, 29 May 2017Updated: 9:08am, 29 May 2017

Banks in Hong Kong will almost certainly have to replace all 3,250 ATMs in the city with new cash dispensers equipped with facial recognition technology as part of the battle against money laundering, financial crime and the funding of terrorism, according to a source familiar with the matter.

The costly ATM overhaul, which will mirror Macau’s move earlier this month, is expected to be part of a major plan – announced by the Hong Kong Monetary Authority on Friday – to reshape how the city tackles the growing menace of financial crime. The regulator did not respond to questions about the overhaul of ATMs.

The plan came as new figures obtained by the South China Morning Post revealed an explosive increase in the number of dodgy financial transactions reported to police over the past five years, leaving investigators struggling to cope.

The Joint Financial Intelligence Unit – which coordinates Hong Kong’s battle against money laundering and terrorism financing – admitted it was facing a “challenging time” having seen convictions drop by more than a third since 2012 while the masterminds who plot some of the world’s most lucrative and complex financial crimes hold on to more of their ill-gotten gains.

Laws aimed at stopping Hong Kong’s banks and financial institutions from becoming funding conduits for global terror groups have never been used since their enactment in 2011.

In separate announcements on Friday, financial regulators in Hong Kong and Macau simultaneously shook up their anti-money-laundering rules, both stressing their determination to fight serious financial crime, underscoring its importance to financial security and stability.