Extended deadlines for regulatory submissions and other exceptional arrangements under Covid-19 pandemic

Our Ref: B1/15C
B9/151C
7 March 2022
The Chief Executive
All Authorized Institutions
Dear Sir / Madam,
Extended deadlines for regulatory submissions and other exceptional arrangements under Covid-19 pandemic The HKMA is aware that amid an upsurge of infections in the latest wave of the Covid-19 pandemic, the banking industry has stepped up efforts to implement special work arrangements and safety measures to protect staff and customers while ensuring an uninterrupted provision of essential banking services. The operational challenges authorized institutions (AIs) face under the circumstances may increase further in the short term as the Hong Kong community makes a concerted effort to combat the pandemic with city-wide measures, including a universal testing exercise, to bring it under control. To enable AIs to focus resources on essential operations, the HKMA considers it appropriate to provide flexibility in certain submissions required of them during this exceptional period. These cover various surveys, banking returns, self-assessments, consultations, etc. which AIs are required to make submissions to the HKMA within specified periods. The way the HKMA proposes to exercise flexibility in each case (i.e. either by way of an extension of submission deadline, or temporary suspension of submission) is set out at Annex 1. For upcoming consultations, the HKMA is prepared as far as appropriate to allow the industry to provide feedback within a more accommodative time frame. Relatedly, you may recall that the HKMA issued a circular on 7 February 2020 informing AIs of its preparedness to allow flexibility for those encountering pandemic-related operational difficulties in meeting the deadlines for lodging documents with the HKMA under section 60 of the Banking Ordinance (Cap.
155) (BO) or in making disclosures under the Banking (Disclosure) Rules (Cap.
155M). A copy of the circular is enclosed at Annex 2 for your ease of reference. We would like to reiterate that the same principles for allowing flexibility as set out in the circular remain applicable. Any AI anticipating difficultiesisrequested to approach the HKMA as soon as practicable for discussion.

Incidentally, in respect of relevant individuals (including executive officers) within the meaning of the BO who are originally required to pass regulatory examinations or have undertaken to complete additional Continuous Professional Training hours on or before 31 May 2022, the HKMA allows the same extension of three calendar months as that provided by the Securities and Futures Commission for licensed individuals1. Application for time extension to the HKMA is not required. The HKMA will continue to closely monitor the development of the pandemic situations and collaborate with the industry in maintaining the safety and soundness of the banking system. The HKMA is also using its supervisory tools flexibly in this period and reiterates the importance of risk-based approach2. Meanwhile, should you have any questions about this circular, you may approach your usual supervisory contacts in the HKMA. Yours faithfully, Arthur Yuen Deputy Chief Executive Encl. c.c. The Chairperson, The Hong Kong Association of Banks The Chairperson, The Deposit-taking Companies Association

1 Please refer to the updated questions 1 and 2 of the FAQs on "Licensing related matters in light of the COVID-19 pandemic" on the SFC's website (https://www.sfc.hk/en/faqs/intermediaries/licensing/Licensing-related-matters-in-light-of-the￾COVID-19-pandemic). 2 Reference can be made to various HKMA circulars, including “COVID-19 and Anti-Money Laundering and Counter-Financing of Terrorism measures” issued in April and updated in July 2020 (https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and￾circular/2020/20200407e1.pdf, https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines￾and-circular/2020/20200730e1.pdf).

---

Annex 1 - Extended deadlines for regulatory submissions

Extended deadlines for regulatory submissions (A) Banking returns / auditors’ reports under the Banking Ordinance A.1. Deferred implementation of revised submission deadlines for selected returns specified in the HKMA circular of 16 November 2020 (Ref.: B4/1C) – A.1.1 In general, the original effective date (i.e. from the position of March 2022) of the revised submission timeline (from six weeks to one month after quarter-end) for the returns as promulgated in the circular and annex (together with the Return of Leverage Ratio based on the annex as updated in December 2021) will be deferred, such that the new submission timeline for the returns will only kick in for the position of Sep 2022 onward. A.1.2 For the Combined Return of Assets and Liabilities (MA(BS)1B), one more month (beyond the existing 6 week submission timeline) will be granted for AIs to submit the return for the position of March 2022 (i.e. 13 June 2022). For the position of June 2022, the submission timeline will be 6 weeks (i.e. 11 August 2022), and for the position of September 2022 onwards, the submission timeline will follow the one-month submission timeline according to the circular. A.2. Extension of submission deadlines or suspension of submission for other banking returns / auditors’ reports – Items Original deadline for next submission Deferred submission date Suspended Return of Consolidated Accounts 12 May 2022 N.A. Submission to resume starting from the position of end-Sep 2022 S.63(3)/63(3A) reports (for AIs whose original submission dates fall due between March and June 2022) As agreed with HKMA 29 Jul 2022 N.A.
Annex 1

Items Original deadline for next submission Deferred submission date Suspended Return of Mandatory Provident Fund Related Activities 21 April 2022 31 May 2022 N.A. (B) Surveys Items Original deadline for next submission(s) Deferred submission date(s) Suspended Survey on Taxi Loans 14 Mar 2022 N.A. Submission to resume starting from the position of end-May 2022 Quarterly Survey on Credit Risk Management of Share Margin Financing 31 Mar 2022 N.A. Submission to resume starting from the position of end-Jun 2022 Quarterly Survey on Credit Cards and Personal Loans 14 Apr 2022 N.A. Submission to resume starting from the position of end-Jun 2022 Quarterly Survey on New Personal￾Lending Portfolio 14 Apr 2022 N.A. Submission to resume starting from the position of end-Jun 2022 Quarterly Survey on loans to professionals and private individuals for other private purposes 21 Apr 2022 N.A. Submission to resume starting from the position of end-Jun 2022 Survey on Debt Securities Held 28 Apr 2022 (HK office or combined position) 12 May 2022 (Consolidated position) 30 May 2022 13 Jun 2022 N.A.

Items Original deadline for next submission(s) Deferred submission date(s) Suspended Survey on Estimated LCR 30 Apr 2022 N.A. Submission to resume starting from the position of end-Jun 2022 Survey on Reform of Interest Rate Benchmarks 13 May 2022 N.A. Submission to resume starting from the position of end-Jun 2022 HKMA-SFC Joint Survey on Sale of Non-exchange Traded Investment Products 11 March 2022 19 April 2022 N.A. Survey on Cross-boundary Wealth Management Connect Scheme 8 April 2022 10 May 2022 19 April 2022 17 May 2022 N.A. Quarterly survey on enquiries about bogus phone calls / messages 4 April 2022 31 May 2022 N.A. Quarterly survey on credit card merchant acquiring business 14 April 2022 31 May 2022 N.A. Quarterly survey on instalment payment plan business 28 April 2022 31 May 2022 N.A. Survey on Adoption of Phase 2 of the Insurance Authority’s Temporary Facilitative Measures 11 March 2022 14 April 2022 31 May 2022 31 May 2022 N.A. Survey on AIs’ Preparation for Participation in the Credit Reference Platform 11 March 2022 18 March 2022 N.A.

(C) Self-assessments
Items Original deadline for next submission Deferred submission date Suspended ORM Independent Compliance Assessment 13 May 2022 30 Jun 2022 N.A. Self-assessment of Compliance with the Code of Banking Practice 2021 29 April 2022 31 May 2022 N.A. (D) Consultations Items Original deadline for next submission Deferred submission date Suspended Consultation on Introduction of Enhanced Competency Framework on Compliance 21 March 2022 25 April 2022 N.A. Consultation on Code of Practice
chapter on Liquidity and Funding in
Resolution
14 March 2022 25 April 2022 N.A.
Consultation on Guidance Paper on
Name Screening, Transaction
Monitoring and Suspicious Transaction
Reporting
23 March 2022 31 May 2022 N.A.

(E) Other statistics / indicators
Items Original deadline for next submission(s) Deferred submission date Suspended Monthly statistics on remote on￾boarding for selected AIs 7 April 2022 (for March statistics) 6 May 2022 (for April statistics) 7 June 2022 N.A. Monthly performance indicators of the AML/CFT control systems for virtual banks 7 April 2022 (for March indicators) 6 May 2022 (for April indicators) 7 June 2022 N.A. Quarterly Financial Crime Data Return 13 May 2022 10 June 2022 N.A. Monthly account opening statistics for personal accounts, corporate accounts and Simple Bank Accounts (SBAs) 15 April 2022 16 May 2022 31 May 2022 31 May 2022 N.A.

---

Annex 2 - Circular on BO (s60) and BDR requirements

Banking Policy Department
Our Ref: B1/15C
B9/151C
7 February 2020
The Chief Executive
All Authorized Institutions
Dear Sir / Madam,
Requirements under section 60 of the Banking Ordinance (Cap. 155) and disclosure requirements under the Banking (Disclosure) Rules (Cap. 155M) Authorized institutions (“AIs”) are required to lodge with the Monetary Authority (“HKMA”) their audited annual accounts and other documents as specified under
section 60 of the Banking Ordinance (“specified documents”):

• for AIs that are incorporated in Hong Kong, the specified documents shall be
  lodged with the HKMA prior to their first exhibition, which is required to be made not later than 4 months after the close of each financial year, or within such further period as the HKMA approves in writing; and
• for AIs that are incorporated outside Hong Kong, the specified documents shall
  be lodged with the HKMA not later than 6 months after the close of each financial year, or within such further period as the HKMA approves in writing. We are aware that owing to the need to provide for special work arrangements etc. in response to the recent outbreak of respiratory disease caused by a novel coronavirus, certain AIs may encounter operational difficulties in meeting the 4-month or 6-month statutory timeline (as the case may be) mentioned above. If an AI anticipates the need for an extension period in this regard, it may apply to the HKMA in writing as soon as practicable. In considering approval, the HKMA will take into account, amongst other relevant considerations, the impact of the coronavirus situation on the AI to see if the extension is justifiable. Similarly, should an AI anticipate difficulty in meeting the deadlines for making the required disclosures under the Banking (Disclosure) Rules owing to the coronavirus situation, it should approach the HKMA as soon as practicable for discussion.
  Annex 2

If you have any queries concerning the above, please feel free to contact Miss Theresa Kwan at tyykwan@hkma.gov.hk or Miss Rowena Cheung at rylcheung@hkma.gov.hk. Yours faithfully, Daryl Ho Executive Director (Banking Policy) cc: FSTB (Attn: Ms Eureka Cheung) HKICPA (Attn: Ms Selene Ho)