Technology Risks And Rewards From Process Automation And Artificial Intelligence

In recent years, the Hong Kong Monetary Authority (HKMA) has actively encouraged banks in Hong Kong to replace rules-based robotic process automation (RPA) with AI-enhanced transaction monitoring (TM) systems to improve efficiency and effectiveness in detecting financial crimes. Banks must conduct comprehensive pre-implementation assessments addressing unique needs, system suitability, resource impacts, and integration with existing infrastructure. Crucially, banks retain full responsibility for TM outcomes—even when using third-party vendors—and must design systems adaptable to evolving transaction patterns and risk scenarios, with senior management overseeing development and ongoing governance.