The President of the Law Society of Hong Kong, Roden Tong, has warned that the provision of legal services may be affected by overcompliance with anti-money laundering regulations.

Tong made the remarks on Saturday at the 2nd New Delhi International Rule of Law Convention -- the last stop of his three-day duty visit to India.

Speaking at the first session of the convention, titled "Anti Money Laundering (AML) Regulations and Financial Action Task Force (FATF) Framework: Issues of Over-compliance and Financial Exclusion in Global South", Tong said there is a critical connection between financial access and legal representation.

Clients without banking access often struggle to afford legal services and seek justice, he explained.

Tong said banks' overcompliance with anti-money laundering regulations, driven by their fear of penalties, has become a "key barrier for lawyers representing 'de-risked' clients", especially those involved in cross-border matters, international transactions and cases involving non-governmental organisations or vulnerable communities.

He cited Hong Kong's experience, saying compliance with anti-money laundering regulations is no longer a barrier to accessing financial services here, thanks to virtual banks, digital banking and mobile payment platforms.

However, the high cost of adopting these new technologies remains a challenge for the legal sector, especially for small law firms, he added.

The Law Society chief stressed the legal sector will continue to work towards promoting a balanced, risk-based approach to anti-money laundering compliance that safeguards both financial integrity and access to justice.