Hkma banking ordinance pdf

Apple is good means to find documents having the exact phrase apple is good. 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. Hkma reboots virtual banking february 2018 3 constraints on the virtual business model. Hkma reboots virtual banking hogan lovells jdsupra. Moreover, the proposed approach of incorporating recovery.

The hong kong monetary authority hkma is the government authority in hong kong responsible for maintaining monetary and banking stability. The lex rules were implemented via the banking exposure limits. Hkma revised capital and liquidity rules under banking ordinance. 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. Hkma fines state bank of india over money laundering controls. 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. This guidance note aims to assist the banking industry in understanding and complying with the relevant requirements under the ordinance as well as promoting good practices in relation to the collection, accuracy, retention, use. The monetary authority, pursuant to section 97m1 of the banking ordinance chapter 155, approves and issues a code of practice after.

In practice, the ma heads an office known as the hong kong monetary. An application to use a banking name or description should be sent to the. Ftahk response to hkma virtual banking consultation. This however has no similar provision to prevent banks from divulging information on investigations by the hkma, comber said. Ftahk response to hkma virtual banking consultation fintech. Hong kong maintains a threetier system of deposittaking institutions, namely licensed banks, restricted licence banks and deposittaking 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. 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.

General consent granted by the monetary authority under section 97 1 of the banking ordinance pdf file, 44. The banking amendment ordinance 2005, enacted in july 2005, provides the legal basis for the hkma to implement basel ii in hong kong. The release of the guidelines is the final step in the introduction of the new disclosure regime for authorised institutions ai that was laid down in the january rules. Near apple, lemon, 2, false means to find documents having apple within 2 words apart from lemon. Hong kong monetary authority register of securities. Established in 1993, the hkma s main purpose is to control inflation and maintain the stability of the hong kong dollar hkd. The organisation reports directly to the financial secretary. Hong kong banking ordinance arrangement of sections. Supervisory policy manual hong kong monetary authority. The hkma derives its power to perform these functions from the banking ordinance. The hkma in september last year unveiled the seven initiatives to promote smartbanking services in hong kong virtual banking was one of the initiatives. The initiative by hkma to launch a new banking ordinance to permit virtual bank ing in hong kong is a result of the need to disrupt the current retail banking industry.

Virtual banking in hong kong the who, the why and the how 2 banking ordinance, authorization of virtual banks, a guideline issued by the monetary authority under section 1610, hong kong monetary authority hkma. Asifma fully supports the development of a recovery and resolution framework in hong kong to safeguard. In particular, 1 the revised capital adequacy framework. Hkma publishes its final guideline on the authorization of virtual banks in hong kong.

Similarly, the local banking ordinance also contains a statutory secrecy provision in s. Historical laws of hong kong online banking ordinance. This response focuses on the initiative to revise the guideline on authorization of virtual banks first published in 2000, and subsequently revised in 2012, in line with corresponding revisions to the banking ordinance. With the current laws of hong kong available on the web, the historical laws of hong kong. Kwm virtual banking in hong kong and china updated. Hkma selling of investment products to private banking customers. Accompanying the introduction of belr are the amendments to part xv of the banking ordinance bo, a new. Hkma implements measures to key issues refine management. Banking ordinance, authorization of virtual banks, hkma.

The hong kong monetary authority the hkma released a circular entitled bank culture reform on 2 march 2017. The hong kong monetary authority is the monetary and banking authority of hong kong. Application part ii appointments, functions of monetary authority, reports by monetary authority and power of governor to give directions 4. Hkma expects virtualbank license applications by august. The basel large exposures framework standards were adopted on 1 july 2019 and, after a grace period of six months, went into effect on since 1 january 2020. Banking policy department hong kong monetary authority. Payment systems in hong kong bank for international. To regulate banking business and the business of taking deposits. 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. 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. Fintech, regtech, amltech, and more, government securities, home loans, institutional banking, investment and institutional. This guideline is issued under section 1610 of the banking ordinance the. On 7 february 2020, the hkma issued a circular on requirements under section 60 of the banking ordinance cap. Authorized institutions ais of certain provisions of the banking.

After receiving the application, the ma will, as soon as. Commencement of new licensing and regulatory regime for insurance intermediaries under the insurance ordinance pdf file, 90. Banking ordinance authorization of virtual banks a guideline. The hong kong management association is a nonprofitmaking organization which aims to be the leading professional organization advancing management excellence in. Governed by the exchange fund ordinance, and the banking ordinance, the hkma functions as hong kongs currency board, and as its defacto central bank making it responsible for the stability of the citys banking system and monetary policy, and the issuance of. Only authorized institutions regulated under the banking ordinance are allowed to carry on banking business or the business of taking deposits in hong kong. Ordinance chapter 486 the ordinance in protecting their customers personal data. 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. Under the banking ordinance, the hkma is the authority responsible for the authorisation, suspension. However, as stated in the hkma virtual banking guideline, virtual banks operating in hong kong will be subjected to the.

Governed by the exchange fund ordinance, and the banking ordinance, the hkma functions as hong kongs currency board, and as its defacto central bank making it responsible for the stability of the citys banking system and monetary policy, and the issuance of currency hong kong dollars. 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. From time to time, the hkma considers and proposes reforms to the ordinance to ensure that it remains up to date and relevant. Meanwhile, the banking industry has begun an educational programme on. The objectives of the ordinance are set out in its long title to regulate banking business and the business of taking deposits. 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. The historical laws of hong kong online is a fulltext image database providing access to past revised editions of hong kong laws. It sets out the principles which the monetary authority. Authority hkma their audited annual accounts and other documents as specified under section 60 of the banking ordinance specified documents. Banking ordinance, authorization of virtual banks, hkma information security is our highest priority. The hong kong monetary authority hkma has issued nonstatutory guidelines on the application of the banking disclosure rules, which came into effect on january 1 this year.

Firms need to be more aware of hong kong secrecy obligations. With the current laws of hong kong available on the web, the historical laws of hong kong online. A list of authorized institutions is available on the hkmas website 200310a. 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. The scheme is expected to begin operation in the third quarter of 2004. 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. 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. Aws virtual banking user guide background at aws, we understand the compliance needs of authorized institutions ai and strive to help them migrate to the cloud in a secure manner. Requirements banking sector rules ai lac rules, which the hong kong monetary authoritys hkma proposes will take effect as subsidiary legislation under the financial institutions resolution ordinance cap. The hong kong monetary authority hkma has recently revised the guideline on authorization of virtual. Specific consents under section 971 of the banking ordinance for. The register of securities staff of ais is a database of current and former relevant individuals, i.

Hong kong banking ordinance arrangement of sections part i. They are collectively known as authorised institutions ais under the banking ordinance. Hkma selling of investment products to private banking. Hkma revised capital and liquidity rules under banking. Established in 1993, the hkmas main purpose is to control inflation and maintain the stability of the hong kong dollar hkd. Hkma provides guidelines on banking disclosure rules. In its supervisory policy manual ic3 reporting requirements relating to authorized institutions external auditors under the banking ordinance, the hkma also provides a description of the nature of some of. 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. The hong kong monetary authority is informing authorized institutions that on feb. The database comprises a total of seven consolidations of the laws of hong kong. It security guidance for hong kong monetary authority hkma.

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. 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. Virtual banks will be required to maintain a physical presence and a principal place of business in hong kong. Annex consultation on proposed amendments to the banking. The powers under the banking ordinance are personally vested in the ma. The monetary authority ma continues to observe regular contraventions by. The hkma has acknowledged that owing to the need to provide for special work. Hong kong banking ordinance as amended arrangement of sections part i preliminary 1. Contraventions of the banking ordinance hong kong monetary. Virtual banking in hong kong and china updated a new era of smart banking.

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