HKMA pushes anti-fraud measures balancing risk and business needs
Hong Kong Monetary Authority deputy warns fraud hits SMEs hard. Banks to lower transfer limits for new accounts by year-end. HKMA aims to balance security with business convenience, while supporting elderly access to banking.
The Hong Kong Monetary Authority (HKMA) has outlined new measures to combat fraud, with a focus on protecting small and medium-sized enterprises (SMEs) from scams involving so-called “mule accounts”. Deputy Chief Executive Yuen Kwok-hang stressed that fraud does not only affect individuals but also many SMEs, which frequently receive fraudulent emails impersonating trading partners and instructing them to transfer funds to other accounts.
“After confirming that the counterparty is genuine and carrying out proper verification, providing the relevant information or funds can already resolve many fraud cases,” Yuen said. He noted that the HKMA has asked retail banks to introduce new practices by the end of the year. When new customers open accounts, certain services such as cross-border transfers and inter-account transfers will initially be set at a low limit. Banks will gradually raise the limit as they establish the customer’s real transaction pattern.
Yuen expressed hope that through appropriate adjustments to services, a balance can be struck between risk prevention and business convenience. He also highlighted financial inclusion as a key goal for the authority, including ensuring access to physical banking services and easy-to-use electronic banking services such as apps for the elderly. “We are working on multiple fronts to support the elderly in accessing banking services faster and closer to market developments,” he said.
Separately, lawmaker raised questions about the progress of the Ensemble project. Deputy Chief Executive Lee Tat-sze responded that a 24/7 environment has already been provided in certain scenarios. However, he said banks still need time to adjust staffing and internal processes before the relevant products can be fully rolled out to all banks and made available to SMEs around the clock. He expressed confidence that the service would be gradually implemented.