Regulatory Alerts2015-02-25
Added · Updated
Operational Incidents Watch Issue No. 2
The Hong Kong Monetary Authority issued this newsletter to highlight lessons from three operational incidents affecting authorized institutions. It details cases involving staff misappropriation of funds through shared credentials, the loss of pledged instrument certificates due to inadequate access controls, and unauthorized access to safe deposit boxes caused by procedural failures. The regulator requires banks to strengthen internal controls, enforce strict segregation of duties, and improve monitoring of high-risk operational areas.