It provides free online access to current and past versions of consolidated legislation dating back to 30 june 1997 and pdf copies marked verified copy have official legal status. Hkma revised capital and liquidity rules under banking. Limited application of ordinance to certain financial institutions 2 4. Hkma continues its focus on corporate governance with. It is a government authority founded on 1 april 1993 when the office of the exchange fund and the office of the commissioner of banking merged. Near apple, lemon, 2, false means to find documents having apple within 2 words apart from lemon. Hong kong monetary authority supervisory policy manual. Hkma notified that the banking amendment ordinance 2018 bao 2018 has been published in the gazette and was passed by the legislative council on january 24, 2018. Hkma implements measures to refine management accountability third party for example, with respect to an outsourced function would not be eligible.
The hkma indicated that it will publish its formal amlctf guidelines for svf licensees in september 2016. The amendment ordinance serves as a broad framework which allows for the implementation of mandatory. Firms need to be more aware of hong kong secrecy obligations, say industry officials financial institutions need to be more aware of hong kongs stringent secrecy obligations, said industry officials, who warned there was a mismatch in the obligations applicable to the territorys various regulators and their own expectations. Hkma circular on credit risk management for personal. The hkma has set up a dedicated webpage to facilitate public understanding of measures by the hkma and the banking sector to support smes and individuals. All authorized institutions ais including foreign bank branches have to comply with the provisions of the banking ordinance which, among other things, require them to maintain adequate liquidity and capital, and to submit periodic returns to the financial regulator hkma. Supervisory policy manual hong kong monetary authority. Limited application of ordinance to cooperative banks omitted 2 3a.
Icbc asia welcomes the cooperation agreement between. It deals with operating licences and specifies rules for business conduct. Manual of the hong kong monetary authority hkma or other regulatory requirements applicable to. Code of banking practice hong kong monetary authority. The hong kong monetary authority is informing authorized institutions that on feb. The hong kong monetary authority hkma and the securities and futures commission sfc have been working on developing a regulatory regime for the otc derivatives market in hong kong. Dear sirmadam, certificate of compliance with the banking ordinance form mabs1fa and form mabs1fb further to my letter of 4 february 2015, i am writing to inform you that our system. On 25 august 2016, the hong kong monetary authority the hkma announced a first round of five successful stored value facilities svf licensees under the payment systems and stored value facilities ordinance the ordinance. Different searching and viewing modes are available to facilitate access to law.
The banking act governs banks, private bankers and savings banks. Hong kong monetary authority hkma took similar steps and published its. Hkmas updated rules conducive to virtualbanking development. Authorization of virtual banks hong kong monetary authority. Hong kong monetary authority tax evasion bank secrecy. Kong are set out in the supervisory policy manual spm module.
Further information on the regulatory consolidation basis is set out in the banking disclosure statement. Established in 1993, the hkmas main purpose is to control inflation and maintain the stability of. This guideline is issued under section 1610 of the banking ordinance the. The hong kong monetary authority hkma is the government authority responsible for maintaining monetary and banking stability in hong kong. Hkma implements measures to key issues refine management. Apple is good means to find documents having the exact phrase apple is good. The hkma launches its open api consultation january 2018 the dawn of a new era. Finma ordinance on the levying of supervisory fees and levies. Companies wishing to carry on banking business or the business of taking deposits in hong kong are required under the banking ordinance 2 to be authorised by. The hkmas supervisory policy manual includes a chapter on outsourcing sa2, which is a nonstatutory guideline setting out hkmas supervisory approach to outsourcing and the major points which the hkma expects authorised institutions to address when outsourcing their activities. Virtual banks will be required to maintain a physical presence and a. The circular sets out a framework for establishing a sound corporate culture within an authorized institution ai based around the three pillars of governance, incentives, and assessment and feedback.
Hkma publishes its final guideline on the authorization of virtual banks in hong kong. Overview of the hkma authorisation regime institutions which intend to carry on banking business or the business of taking deposits in hong kong are required to be authorised by the hkma as authorised institutions under section 161 of the hong kong banking ordinance. The powers under the banking ordinance are personally vested in the ma. Firms need to be more aware of hong kong secrecy obligations. Established in 1993, the hkmas main purpose is to control inflation and maintain the stability of the hong kong dollar hkd. Hkma reboots virtual banking hogan lovells jdsupra. The hkma will permit ais to carve out a portion of their personal lending portfolio as. The hong kong monetary authority hkma published its revised guideline on authorization of virtual banks the guideline on 30 may 2018 following a public consultation which closed in march 2018.
Regulatory overview of the hong kong financial industry. It also provides practical guidance on two questions that financial institutions should ask themselves. Legal basis for banks eidgenossische finanzmarktaufsicht finma. Consultation paper on the securities and futures otc. Hkma on timeline to lodge documents specified under banking. Finmas legal basis as a supervisory authority and organisation derives from the federal constitution, federal acts and finma ordinances. Gn 1505 banking ordinance minimum criteria for authorization. Kong, the legal framework for banking is based on the banking ordinance. Hkma and sfc, consultation conclusions and further consultation on the securities and.
This manual sets out the hkmas latest supervisory policies and practices, the minimum standards authorized institutions ais are expected to attain in order to satisfy the requirements of the banking ordinance and recommendations on best practices that ais should aim to achieve. The new guidelines should be viewed as requirements for securities and futures dealers and asset managers registered with the sfc and banks supervised by the hkma. Hong kong maintains a hong kong maintains a threetier banking system, which comprises banks, restricted licence banks and deposittaking companies. In practice, the ma heads an office known as the hong kong monetary. The manual is available online for downloading at hkengkeyfunctionsbankingstabilitysupervisorypolicy. Virtual banking in hong kong and china updated a new era of smart banking. The banking ordinance applies to banks, private bankers and savings banks. Hkma circular on credit risk management for personal lending.
Hkma revised capital and liquidity rules under banking ordinance. Dear sirmadam, certificate of compliance with the banking ordinance form mabs1fa and form mabs1fb further to my letter of. Mr norman t l chan gbs jp, chief executive, hong kong monetary authority norman chan was appointed chief executive of the hong kong monetary authority on 1 october 2009. Virtual banks will be required to maintain a physical presence and a principal place of business in hong kong. The financial market legislation governing banks derives from one federal act, four federal council ordinances and one finma ordinance. If you want to match the order of words, specify near apple, lemon, 2, true a percent sign % can be used to match zero or more characters. Icbc asia welcomes the cooperation agreement between hkma and bnm 28 august 20, hong kong the hong kong monetary authority hkma and bank negara malaysia bnm held a bilateral meeting today wednesday in kuala lumpur to discuss bilateral economic and financial issues and to consider initiatives that help promote financial. To regulate banking business and the business of taking deposits.
This clarification is not unexpected given questions raised around how the securities and futures commissions sfc manager in charge mic regime would be harmonised with the regime administered by the hkma under section 72b of the banking ordinance bo please see our briefing on the mic regime here. The banking companies ordinance, 1962 lvii of 1962 contents part i preliminary sections. With the objective of serving the growth aspirations of the indian corporate abroad and meeting the banking needs of overseas indians, sbi is now present in all time zones, and has the largest overseas network among all indian banks with 198 foreign offices spread over 35 countries. The hkma has the power under the banking ordinance to vary any capital. Hong kong monetary authoritys lack of independence queried. Mr chan joined the hong kong government as an administrative officer in 1976 and became deputy director monetary management of the office of the exchange fund in 1991. Ajay shamdasani, regulatory intelligence financial institutions need to be more aware of hong kongs stringent secrecy obligations, said industry officials, who warned there was a mismatch in the obligations applicable to the territorys various regulators and their own expectations. Hong kong monetary authority tax evasion free download as powerpoint presentation. Jul 18, 2014 the imf has called into question the independence of the hong kong monetary authority hkma from the chief executive at a time of growing concern over the citys exposure to mainland borrowers.
The official reserves of hong kong and the banking system are important. Under the exchange fund ordinance, the hkmas primary objective is to ensure the. In hong kong, all ais have to submit statistics and information to the hong kong monetary authority hkma for statistical and prudential supervision purposes, as part of their fulfilment of their regulatory requirements under the banking ordinance bo. The hong kong monetary authority hkma simultaneously issued a circular to ceos of registered institutions requiring them to apply the guidelines. Hkma fines state bank of india over money laundering controls. The imf has called into question the independence of the hong kong monetary authority hkma from the chief executive at a time of growing concern. Lombard risk agilereporter delivers these requirements. This code of practice cop is issued jointly by the hong kong. Central banking publications hosts several highlevel study groups for central bankers around the world. Hkma reboots virtual banking february 2018 3 constraints on the virtual business model. The hong kong monetary authority the hkma released a circular entitled bank culture reform on 2 march 2017. Guidelines of application for arwpcrwp certification. Hong kong elegislation hkel is the official database of hong kong legislation. On 9 may 2018, the hong kong monetary authority hkma issued a circular on credit risk management for personal lending business circular, allowing authorized institutions ais to adopt credit risk management techniques and practices enabled by technology for personal lending business.
Hkma selling of investment products to private banking customers. The banking companies ordinance, 1962 banking companies. The guideline is intended to encourage virtual banking in hong kong, one of seven hkma initiatives to move hong kong to a new era of smart banking. Hkma publishes its final guideline on the authorization of virtual banks in hong kong this article was written by richard mazzochi, minny siu and urszula mccormack. Aug 30, 2016 these draft guidelines follow a riskbased structure similar to that applied by the hkma to financial institutions regulated under the banking ordinance in prescribing criteria for carrying out simplified and enhanced due diligence. The guideline is intended to encourage virtual banking in hong kong, one of seven hkma initiatives to move hong kong to a new era of smart. However, the new guidance will require ris to consider their existing governance. Hong kong issues new guideline on virtual bank authorisation. This briefing considers and compares the secrecy obligations contained in the securities and futures ordinance sfo and banking ordinance bo. Hong kong monetary authoritys lack of independence. Latest hong kong monetary authority hkma articles on central banks policy, regulation. This manual sets out the hkmas latest supervisory policies and.
Minimum criteria for authorization hong kong monetary authority. The banking capital amendment rules 2017, the banking liquidity amendment rules 2017, and the banking specification of multilateral development bank amendment notice 2017 were published in the gazette to implement certain recent international standards on banking regulation in hong kong. To that end, and subsequent to two consultation exercises conducted in october 2011 and july 2012, the securities and futures amendment ordinance 2014. Search and download thousands of white papers, case studies and reports from risk library all white papers. The hkma launches its open api consultation january 2018 1 on 11 january, 2018. The guidance alsohighlights that for other functions, such as compliance, risk management and internal audit, they are of no less importance than the front. The organisation reports directly to the financial secretary. The code can be viewed or downloaded from the websites of hkab and. Banks first issued by the ma under section 1610 of the ordinance on 5 may. The supervisory policy manual contains the hkmas latest supervisory policies. This article was written by richard mazzochi, minny siu and urszula mccormack on 30 may 2018, the hong kong monetary authority hkma published a revised guideline on the authorization of virtual banks the revised guideline following the completion of a. Banking ordinance authorization of virtual banks a guideline. The main purpose of the bao 2018 is to amend the banking ordinance bo to bring the countrys regulatory regime uptodate with the latest international standards on large.