Regulatory Alerts2015-06-30
Added · Updated
Operational Incidents Watch Issue No. 3
The Hong Kong Monetary Authority issued this newsletter to highlight lessons from three operational incidents involving misappropriation of dormant account funds, fabrication of loan documents, and pricing basis deviations. The document details how staff circumvented maker-checker controls, exploited inadequate segregation of duties in SWIFT messaging, and relied on poor IT system communication to commit fraud or errors. It urges authorized institutions to strengthen fraud risk evaluations, enforce strict dual controls for free format messages, and implement comprehensive checks to ensure IT pricing aligns with client agreements.
More like this from HKMA
HKMA published 11 documents in the last 30 days. We email you each new one the day it's published.