The Hong Kong Securities and Futures Commission (SFC) has issued a circular urging licensed corporations and virtual asset trading platforms to be vigilant against tiered transaction activities that may indicate money laundering. The SFC highlighted a rising trend of criminals using these institutions for tiered trading, often to launder proceeds from fraud by obscuring the origin and destination of illicit funds. The circular outlines common warning signs of such activities, including frequent and organized deposits into client accounts followed by immediate withdrawals in cash or virtual assets. The SFC emphasized the need for stringent detection and prevention measures to combat these suspicious fund transfers.