Regulatory Alerts2010-02-08
Added · Updated
Guidance Paper on Cover Payment Messages Related to Cross-border Wire Transfers
The Hong Kong Monetary Authority issued this guidance to establish supervisory expectations for authorized institutions handling cover payment messages in cross-border wire transfers. It mandates that ordering banks ensure originator and beneficiary data integrity, requires intermediary banks to reject or investigate messages with missing information, and obliges beneficiary banks to screen for transparency deficiencies. These measures aim to enhance anti-money laundering compliance and prevent the freezing or blocking of customer assets due to incomplete transaction details.