Firms need to be more aware of hong kong secrecy obligations. Near apple, lemon, 2, false means to find documents having apple within 2 words apart from lemon. The hkma plays an active role in the development of financial infrastructure in hong kong with a view to maintaining hong kong as an international financial centre and developing hong kong into a settlement hub in the asian region. Hkma reporting regulation london stock exchange group. Since the regulations came into force last saturday, the financial markets have. It deals with operating licences and specifies rules for business conduct. 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. If an internal link led you here, you may wish to change the link to point directly to the intended article. Many have voiced concern about its impact on hong kongs economy and financial markets. Hong kong monetary authority hkma news and analysis articles central banking home. The banking act governs banks, private bankers and savings banks. Carmen chu, executive director banking conduct of the hong kong monetary authority hkma, speaks about hkmas ongoing initiatives to protect bank consumers, as well as expands on some important regulatory standards covered in a january 2015 hkma circular that are generally applicable to authorized institutions ais that sell investment products to consumers in hong.
Hkma has also stated that an authorised institution should consider how they will continue to meet the minimum authorisation criteria under the banking ordinance when considering outsourcing including having adequate accounting systems and systems of control, and conducting business with consideration to the interests of depositors and. This manual sets out the hkmas latest supervisory policies and. Hkma revised capital and liquidity rules under banking ordinance. Established in 1993, the hkmas main purpose is to control inflation and maintain the stability of. Register now for your free, tailored, daily legal newsfeed service. The hong kong monetary authority the hkma released a circular entitled bank culture reform on 2 march 2017.
The auditor is normally appointed by the ai with the approval of the hkma for the purpose of. Hkma selling of investment products to private banking. An ai is essentially an institution authorised under the hong kong banking ordinance to carry on the business of taking deposits under the regulatory oversight of the hkma. Regulatory framework of banking institutions regulating. Hong kong monetary authority disambiguation page providing links to topics that could be referred to by the same search term this disambiguation page lists articles associated with the title hkma. Hong kong maintains a threetier system of deposittaking institutions, namely licensed banks, restricted licence banks and deposittaking companies.
The hkma also, together with the government and the securities and futures commission sfc, built a regulatory regime for the otc derivatives markets otc regulatory regime under the securities and futures ordinance sfo, including requirements for mandatory reporting to the tr of the hkma hktr and mandatory clearing at designated ccps. Virtual banks will be required to maintain a physical presence and a. The hkma is currently revising the banking ordinance once again to bring the legal. To regulate banking business and the business of taking deposits. They are collectively known as authorised institutions ais under the banking ordinance. Hong kong monetary authority guide to hong kong monetary. Prudential regulation of banks in hong kong lexology.
Although the hk dollar was on a free float, the united states remained. Where the hkma is exercising a power under the sfo, the secrecy obligations contained in section 378 will apply, and consequently any financial institution or individual assisting the hkma will be bound by them. The fund was established and managed originally by the currency ordinance in 1935. Deferral of basel iii implementation and hkma s supervisory actions in response to covid19 pdf file. Hong kong monetary authority consults on rules on contractual.
The hkma was established on 1 april 1993 by merging the office of the exchange fund with the office of the commissioner of banking. However, the new guidance will require ris to consider their existing governance. Hkma fines state bank of india over money laundering controls. Code of banking practice hong kong monetary authority. Principal activities the bank is a licensed bank registered under the hong kong banking ordinance. Hkma extends focus on management and its accountability.
The banking ordinance provides for the authorization and supervision of authorized institutions so as to provide a measure of protection to. Monitoring banking operations supervisory powers hkma responsible for supervising compliance with the provisions of the banking ordinance. 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. Legal basis for banks eidgenossische finanzmarktaufsicht finma. 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. The hong kong monetary authority hkma would like to provide some important perspectives often overlooked in prevalent narratives. The hong kong monetary authority is informing authorized institutions that on feb. Hkma reboots virtual banking february 2018 3 constraints on the virtual business model. Hong kong is a free and open international financial centre with low tax rates, wide.
This disambiguation page lists articles associated with the title hkma. Subsequently in december 2019, as part of the initiative, the hkma wrote to the hong kong association of banks to consult on a common assessment framework for green and sustainable banking framework. Appendix 5 the banking ordinance important provisions for the auditor. Banking policy department hong kong monetary authority. To print the whole chapter in html, please click at the bottom of the toc panel and then click. Hong kong banking ordinance arrangement of sections part i. Supervisory policy manual hong kong monetary authority. Outsourcing 2019 laws and regulations hong kong iclg. Update from the hkma the social unrest in hong kong has made global headlines over the past few months. We have seen the implementation of international initiatives basel iii, otc derivatives clearing and margining, recovery and resolution, etc. Accompanying the introduction of belr are the amendments to part xv of the banking ordinance bo, a new return of large exposures mabs28, the banking exposure limits code bel code and several revised supervisory policy manuals spms issued by the hong kong monetary authority hkma which collectively. Accompanying the introduction of belr are the amendments to part xv of the banking ordinance bo, a new. Banking ordinance, and the policy objectives and work plans pursued by the hkma.
Hkma continues its focus on corporate governance with. The content of this website is for general information purposes only and does not purport to provide comprehensive full legal or other advice. The banking ordinance provides for the authorization and supervision of authorized institutions so as to provide a measure of protection to depositors and to promote the general. Hkma revised capital and liquidity rules under banking. Central bankings cambridge training series is designed to equip senior decisionmakers in financial institutions around the world to meet the increasing challenges which they face professionally. Mar 20, 2019 the conduct of banking and deposittaking business in hong kong is under supervision and regulation by the hong kong monetary authority hkma, and subject to the banking ordinance bo. Supplement may result in the hkma considering that the ai does not meet the criteria for authorisation under the hong kong banking ordinance cap 155. The conduct of banking and deposittaking business in hong kong is under supervision and regulation by the hong kong monetary authority hkma, and subject to the banking ordinance bo. Hkmas consultation on establishing greenness of banks deacons. The organisation reports directly to the financial secretary. The hong kong management association is a nonprofitmaking organization which aims to be the leading professional organization advancing management excellence in hong kong and the region.
Hkma selling of investment products to private banking customers. Payment systems in hong kong bank for international. General consent granted by the monetary authority under section 97 1 of the banking ordinance pdf file, 44. 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. Established in 1993, the hkma s main purpose is to control inflation and maintain the stability of the hong kong dollar hkd. 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. Hong kong monetary authority consults on rules on contractual stays on termination rights in financial contracts linklaters llp to view this article you need a pdf viewer such as adobe reader. Reports by the auditor under the banking ordinance 5 pn 830 april 2016 part ii auditors reporting responsibilities under the ordinance introduction 11. The framework aims to assess the greenness of banks and to collect information. The banks principal activities are the provision of banking and related financial services.
Virtual banks will be required to maintain a physical presence and a principal place of business in hong kong. Under the exchange fund ordinance, the hkma s primary objective is to ensure the stability of the hong kong currency, and the banking system. Lombard risk agilereporter delivers these requirements. Under the exchange fund ordinance, the hkmas primary objective is to ensure the stability of the hong kong currency. 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. Interpretative notes to the supplement have also been issued by the hkma that have been developed with the hong kong association of banks and the dtc association.
The hkma issues guidance to ais through its supervisory policy manual. First, the hkma operates a currency board system, while the central banking institutions of the. Authority hkma their audited annual accounts and other documents as specified under section 60 of the banking ordinance specified documents. Payment, clearing and settlement systems in hong kong sar. Guided by the hong kong monetary authority and in line with international best practice, banks in hong kong have enhanced.
Banking processes securities processes hkma hong kong monetary authority hkma circulars 2014 hkma circulars 20 hkma circulars 2012 hkma circulars 2011 hkma supervisory policy manual hkma guidelines hkma banking policy and supervision cap155 banking ordinance sample process maps for hkma regulations hkma circulars 2010. 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. In may 2019, the hkma unveiled a number of measures promoting the development of green finance in hong kong. The banking companies ordinance, 1962 banking companies ordinance, 1962 lvii of 1962 and the banking companies rules 1963 made under the ordinance as amended up to 31st may, 1997 the banking companies ordinance, 1962 lvii of 1962 contents part i preliminary sections. Please set the page orientation to landscape for printing of bilingual texts on a single page. Hkma reboots virtual banking hogan lovells jdsupra. View regulatory framework of banking institutions from fbe econ6001 at the university of hong kong. Hkma may issue guidelines stating how its statutory. 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.
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. The financial market legislation governing banks derives from one federal act, four federal council ordinances and one finma ordinance. The hkma has consulted the banking advisory committee, the dtc advisory committee, the hong kong association of banks and the dtc. Hkmas consultation on establishing greenness of banks. 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 can now accommodate submission of the revised certificate of compliance with the banking ordinance forms mabs1fa and b by authorized institutions ais via. Application part ii appointments, functions of monetary authority, reports by monetary authority and power of governor to give directions 4. Federal register comparability determination for hong. Regulations ordinance on public safety grounds, this does not affect the normal operations of hong kongs banking sector or financial markets. Under the banking ordinance, the hkma is the authority responsible for the authorisation, suspension. Hong kong banking ordinance as amended arrangement of sections part i preliminary 1. 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.
The banking exposure limits rules belr came into effect on 1 july 2019 with an aim to implement the large exposure standards published by the basel committee on banking supervision in april 2014 in hong kong. Latest hong kong monetary authority hkma articles on central banks policy, regulation. Banking ordinance chapter 155 banking ordinance amendment of seventh schedule notice 2012 introduction at the meeting of the executive council on 8 may 2012, the council advised and the chief executive ordered that, the banking ordinance amendment of seventh schedule notice 2012, at annex a, should be made. Reports by the auditor under the banking ordinance hkicpa. Apple is good means to find documents having the exact phrase apple is good.