Other forms of transnational organised crimes include, for example, the infringement of intellectual property rights, tax evasion, and the smuggling of endangered species. It is estimated that the black market for illegal wildlife products generates around US$20 billion annually worldwide, while counterfeit goods trade amounts to approximately US$400 billion in 2019, equivalent to 2.5 per cent of world trade. These alarming figures underscore the vast scale of criminal activities we are up against.

The intricate network of transnational organised crime and money laundering

At the core of transnational organised crime lies the crime of money laundering. They are deeply interconnected, forming an intricate network where each element supports and sustains the other. Criminal enterprises employ sophisticated methods to disguise the origins of their illicit proceeds, allowing them to reinvest in further criminal activities. In the Global Financial Crime Report 2024, Nasdaq estimates that US$3 trillion in illicit funds flowed through the global financial system in 2023, with fraud scams and bank fraud schemes totalling US$480 billion in losses globally. This illustrates the massive threat that money laundering poses to global financial integrity.

To tackle such threats, no country can isolate itself, and it demands a co-ordinated approach that transcends borders and sectors. Here, I would like to share three of my humble suggestions to counter the issue. First and foremost, we need concerted international co-operation. Co-operation generates synergistic effects, and it is only through unified efforts of international co-operation, intelligence exchange, and meaningful dialogues setting enforcement strategies that such impact can be amplified and bring about meaningful changes. That is why the Financial Action Task Force (FATF) and INTERPOL come into play. I strongly believe that when countries come together to combat crime, they enhance their resources and capabilities, forming a stronger, more formidable alliance on a global scale.

Take Hong Kong as an example again. To comply with FATF recommendations, apart from a resilient and responsive regulatory framework for financial institutions, we have introduced a registration regime for dealers in precious metals and stones, as well as a licensing regime for virtual asset service providers, further closing off channels that could potentially be exploited by criminals to launder money outside the banking system.

My third suggestion is compliance by the private sector. A robust legal framework can only achieve its full potential when paired with active co-operation from the private sector. The financial sector and non-financial gatekeepers should continue to press hard to implement risk-based preventive measures to detect and prevent abuse of the financial system for money laundering. By spotting money laundering and raising red flags on the frontline, the private sector has proven to be an invaluable partner of law enforcement agencies. I am most delighted to note the participation of the private sector in this forum today.

In many jurisdictions, in addition to customer due diligence and record keeping requirements applicable to financial sectors and non-financial gatekeepers, the statutory obligation of filing suspicious transaction reports (STR) apply to all persons, and such a reporting requirement continues to provide important intelligence to law enforcement agencies. Hong Kong is no exception. For example, in the first 10 months in 2024, our JFIU already handled over 100 000 STR filed by different sectors, mostly from financial institutions, showing a significantly enhanced awareness of their legal duties in recent years when compared to less than 40 000 STR in 2014.

In this regard, I welcome the collaboration between Hong Kong Customs and the University of Hong Kong in forging a strategic partnership in areas such as innovative technology and anti-money laundering. The strategic partnership will build a solid foundation for providing capacity building programmes in emerging technologies for regional customs authorities to enhance enforcement effectiveness.

​Ladies and gentlemen, having shared with you my humble suggestions to counter money laundering activities and upcoming joint efforts required from our representatives here in combating transnational organised crimes, I hope that aside from work, our guests could spare some hours after each day’s programme to discover the rich tapestry of our city’s stories. Try to explore the bustling streets, experience the diverse cuisines, and immerse yourself in the vibrant culture that defines Hong Kong. In particular, our city is buzzing with panda joy following the recent birth of the first-ever giant panda twins in Hong Kong and with the arrival of a pair of new giant pandas gifted by the Central People’s Government. If you will stay in Hong Kong over the coming weekend, I strongly recommend that you see the PANDA GO! FEST HK exhibition in Ngong Ping 360 near Tung Chung on December 14 and 15, 2024, which showcases a total of 2 500 cute sculptures of giant pandas. Lastly, may I wish you all a rewarding Forum and a very pleasant stay in Hong Kong. Thank you.