ChainCatcher reports that, according to Zhitong Finance, the Hong Kong Securities and Futures Commission (SFC) issued a circular today urging licensed corporations and virtual asset trading platforms to be vigilant against suspicious fund transfers that show signs of tiered trading activities in order to prevent money laundering.
In its circular, the Hong Kong Securities and Futures Commission (SFC) pointed out that there is a continuous upward trend in the use of licensed institutions for tiered trading activities by criminals. Some individuals are attempting to launder illicit proceeds from fraud and deception cases by concealing the source and destination of illegal funds. Common warning signs of tiered trading activities involve a series of suspicious behaviors, including frequent, rapid, and organized deposits of funds into client accounts, followed by withdrawals in the form of cash or virtual assets.
Meanwhile, the Hong Kong Securities and Futures Commission reiterated in its circular the stringent standards it expects of licensed institutions to detect and prevent tiered trading activities.
