Regulatory Alerts2022-07-20
Added · Updated
Expansion of Pilot Payment Arrangements for Property Transactions
The Hong Kong Monetary Authority endorses the expansion of the Payment Arrangements for Property Transactions pilot to all licensed banks offering residential mortgage loans. This initiative allows borrowers to use direct bank-to-bank transfers for mortgage refinancing, replacing the traditional practice of routing funds through law firm client accounts to reduce operational risks. Mortgage banks are required to implement necessary system changes, train staff, and set adoption targets to facilitate customer uptake and assess the scheme's effectiveness.