…to the 56th Edition of House! This past month, Hong Kong’s Court of First Instance effectively dismissed all challenges to the SFC’s decision to seize retail digital devices, for purpose of their search operations. In doing so, Hong Kong has from a strictly legislative standpoint, taken an incredibly effective, yet arguably controversial step at enhancing the SFC's investigative powers.

Otherwise, while new roles may not emerge with immediate effect as firms react to the challenges of COVID-19, many are looking beyond and how this event could reshape society, business practices and everyday life. Digitalisation, specifically the adoption of RegTech and FinTech solutions, which has already reportedly seen a rise in demand, is the most obvious and relevant adaptation to come. 

This once again brings us to the ever-present demand for tech and cybercrime experts, who along with AML and Wealth Management professionals, continue to be of increasingly high demand across Asia Pacific and Australia.

As much as we would like this edition of House to be strictly regulatory based, we would be remiss if we didn’t at least mention COVID-19, and its continued grip on the entire world.

While Hong Kong has been undeniably on top of things, leading the world in-so-far as containment is concerned, the epidemic has definitely brought about an entirely new set of unprecedented challenges, for head-hunters and compliance professionals alike.

Health and safety concerns have been at the forefront of everyone's priorities, prompting the SFC, and the HKEX to encourage market practices in accordance to guidelines set down by health professionals. These necessary amendments to daily work practices have had a significant impact upon Accounting Compliance and Audit professionals, to whom the SFC and HKEX will provide the necessary assistance to ensure the fulfillment of all reporting obligations, in light of the current circumstances.

On top of the SFC's contribution to the cause, the HKMA subsequently released upwards of HK$500 Billion to encourage support for SME’s, following Chief Executive Eddie Yue’s statement of alarm this past week. The central bank has since then advised institutions to be more supportive of the local economy in this difficult time.

The HKMA’s assertive action to counter the effects of COVID-19 upon the domestic economy coincides with the necessity for compliance teams and regulatory systems to operate remotely. As a result, the rapid spread of the virus has inadvertently been a major catalyst for the adoption of RegTech, particularly across APAC.

As a result, while perhaps only on a contractual basis, we may well see a demand for professionals with distinctive experience in enhancing data-sharing mechanisms, and a contemporary understanding of the legal and regulatory nuance of both Reg and FinTech.

Organisations and governments alike are facing unprecedented levels of disruption to their business practices and processes as they "adapt or die" to COVID-19. 

While firms introduce remote working and other innovative short term solutions, many, including BlackRock’s CEO Larry Fink, are looking beyond and how this crisis will reshape business practices, governments and the challenges they face. 

Remote and flexible working arrangements are now the norm and could become increasingly popular or indeed the ‘new normal’ for many employees post COVID-19. This, in turn, will only increase the stresses on internal systems and the number of regulatory risks associated with data security, confidentiality and accountability.

Regulators and governments may also have to reassess the new environment, possibly in a more dramatic manner, as many of their processes and requirements are complex and cumbersome. Firms will demand a higher level of efficiency and flexibility so they can best manage their regulatory risks. 

Naturally, the answer lies once again in technology and COVID-19 may be the catalyst. China is already reporting that the virus has become a major driver for the adoption of FinTech and RegTech and as the world continues to employ tech-savvy solutions, cybersecurity and regulatory professionals with the technical expertise to oversee these systems and changes are going to be widely sought after.

As AML fines continue to rise globally, and boardroom level liability is given more attention than perhaps ever before, transfers and transactions have come under increasing regulatory scrutiny and control.

National authorities, not necessarily specific to APAC or EMEA markets, have taken considerable strides to continually abide by the AML and CTF standards set forth by the Financial Action Task Force (FATF), in order to avoid any further embarrassments and regulatory slip ups.

The difficultly herein, is that regulatory bodies and the governments under whom they operate, interpret AML standards under their own national legislative criteria, which raises a number of challenges amongst compliance teams, not just within the banking, but within the buy side and across law firms.

As a result, we have noticed a distinctive demand in wealth management compliance officers, AML experts and qualified MLRO’s as firms attempt to come to grips with the evolving nature of regulatory procedure. As always, we encourage our subscribers to reach out to us if these areas of expertise are of any relevance to their desired career progression. 

Likewise, crypto exchanges continue to attract scrutiny from all angles, with the introduction of the Travel Rule, implying their requirement to both gather and transfer information from along the payment chain.

The growing sophistication around the crypto sphere still leaves a lot to be understood, prompting a rise in demand for AML profession with the relevant expertise, to suit compliance and consumer demands.

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