Regulatory Alerts2017-09-07
Added · Updated
Operational Incidents Watch Issue No. 8
The Hong Kong Monetary Authority issued this newsletter to highlight lessons from two operational incidents involving bill discounting insurance deficiencies and staff misappropriation of customer funds. The regulator requires authorized institutions to implement robust procedures for verifying ongoing insurance coverage and adhering to claim deadlines to prevent financial losses from trade bill defaults. Additionally, banks must enforce strict controls on ATM card handling and prohibit staff from retaining customer e-banking credentials to mitigate internal fraud risks.