Regulatory Alerts2016-09-08
Added · Updated
De-risking and Financial Inclusion
The Hong Kong Monetary Authority issued this circular to address financial exclusion caused by Authorized Institutions' disproportionate de-risking practices. It mandates that banks adopt a risk-based approach to customer due diligence, ensuring measures are proportional to actual risks rather than applying one-size-fits-all restrictions. The regulator requires senior management to review and align internal processes with principles of transparency, reasonableness, and efficiency to maintain access to basic banking services for bona fide customers.