Principal activities the bank is a licensed bank registered under the hong kong banking ordinance. Outsourcing 2019 laws and regulations hong kong iclg. 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. 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. Hkma may issue guidelines stating how its statutory. 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. Please set the page orientation to landscape for printing of bilingual texts on a single page. Hkmas consultation on establishing greenness of banks deacons. 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. 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. Hkma guidelines hkma banking policy and supervision cap155 banking ordinance sample process maps for hkma regulations.
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. Reports by the auditor under the banking ordinance 5 pn 830 april 2016 part ii auditors reporting responsibilities under the ordinance introduction 11. Federal register comparability determination for hong. Register now for your free, tailored, daily legal newsfeed service.
The banking act governs banks, private bankers and savings banks. Under the exchange fund ordinance, the hkma s primary objective is to ensure the stability of the hong kong currency, and the banking system. Hong kong banking ordinance arrangement of sections part i. Since the regulations came into force last saturday, the financial markets have. Regulations ordinance on public safety grounds, this does not affect the normal operations of hong kongs banking sector or financial markets. Hong kong monetary authority or hkma the government authority in hong kong with responsibility for maintaining currency and banking stability. 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. To regulate banking business and the business of taking deposits. A quick guide to hong kongs financial system and services. General consent granted by the monetary authority under section 97 1 of the banking ordinance pdf file, 44.
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. 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. 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. They are collectively known as authorised institutions ais under the banking ordinance. 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. 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. Guided by the hong kong monetary authority and in line with international best practice, banks in hong kong have enhanced.
If an internal link led you here, you may wish to change the link to point directly to the intended article. Legal basis for banks eidgenossische finanzmarktaufsicht finma. Hong kong monetary authority guide to hong kong monetary. Hong kong banking ordinance arrangement of sections.
Hkma reboots virtual banking february 2018 3 constraints on the virtual business model. The content of this website is for general information purposes only and does not purport to provide comprehensive full legal or other advice. Hong kong maintains a threetier system of deposittaking institutions, namely licensed banks, restricted licence banks and deposittaking companies. The hkma issues guidance to ais through its supervisory policy manual. However, the new guidance will require ris to consider their existing governance. The hkma has consulted the banking advisory committee, the dtc advisory committee, the hong kong association of banks and the dtc. Apple is good means to find documents having the exact phrase apple is good. Established in 1993, the hkmas main purpose is to control inflation and maintain the stability of. 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. 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. 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 hong kong monetary authority is informing authorized institutions that on feb. 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.
To print the whole chapter in html, please click at the bottom of the toc panel and then click. Hkma revised capital and liquidity rules under banking. 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 framework aims to assess the greenness of banks and to collect information. Banking policy department hong kong monetary authority. Authority hkma their audited annual accounts and other documents as specified under section 60 of the banking ordinance specified documents. Steadily increasing regulation and intensifying regulatory scrutiny have been fixtures of the international banking scene for many years now, and hong kong has not been an exception. Hkma reporting regulation london stock exchange group.
Code of banking practice hong kong monetary authority. Under the exchange fund ordinance, the hkmas primary objective is to ensure the stability of the hong kong currency. The hong kong monetary authority the hkma released a circular entitled bank culture reform on 2 march 2017. 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.
Monitoring banking operations supervisory powers hkma responsible for supervising compliance with the provisions of the banking ordinance. Payment, clearing and settlement systems in hong kong sar. It deals with operating licences and specifies rules for business conduct. 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. First, the hkma operates a currency board system, while the central banking institutions of the. Banking ordinance, and the policy objectives and work plans pursued by the hkma. A free trade agreement entered into between the government of the hong kong special administrative region and the central peoples government of the peoples republic of. Update from the hkma the social unrest in hong kong has made global headlines over the past few months. Under the banking ordinance, the hkma is the authority responsible for the authorisation, suspension. Hkma fines state bank of india over money laundering controls. Hkma on timeline to lodge documents specified under banking. Supervisory policy manual hong kong monetary authority. 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.
Payment systems in hong kong bank for international. The fund was established and managed originally by the currency ordinance in 1935. Hkma reboots virtual banking hogan lovells jdsupra. Virtual banks will be required to maintain a physical presence and a principal place of business 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. Virtual banks will be required to maintain a physical presence and a. 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. Hkma selling of investment products to private banking customers. Hong kong monetary authority wikipedia republished wiki 2.
We have seen the implementation of international initiatives basel iii, otc derivatives clearing and margining, recovery and resolution, etc. The hkma is currently revising the banking ordinance once again to bring the legal. The hong kong monetary authority hkma would like to provide some important perspectives often overlooked in prevalent narratives. Regulatory framework of banking institutions regulating. The financial market legislation governing banks derives from one federal act, four federal council ordinances and one finma ordinance. Near apple, lemon, 2, false means to find documents having apple within 2 words apart from lemon.
The organisation reports directly to the financial secretary. The banks principal activities are the provision of banking and related financial services. The banking ordinance applies to banks, private bankers and savings banks. Deferral of basel iii implementation and hkma s supervisory actions in response to covid19 pdf file. 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. This manual sets out the hkmas latest supervisory policies and. Face to face with carmen chu, executive director banking. Hong kong is a free and open international financial centre with low tax rates, wide. 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. 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 ordinance. 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. Hkma extends focus on management and its accountability. Hong kong monetary authority consults on rules on contractual. 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 selling of investment products to private banking. Established in 1993, the hkma s main purpose is to control inflation and maintain the stability of the hong kong dollar hkd. Many have voiced concern about its impact on hong kongs economy and financial markets. Accompanying the introduction of belr are the amendments to part xv of the banking ordinance bo, a new. 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. Hong kong banking ordinance as amended arrangement of sections part i preliminary 1.
Although the hk dollar was on a free float, the united states remained. The auditor is normally appointed by the ai with the approval of the hkma for the purpose of. Application part ii appointments, functions of monetary authority, reports by monetary authority and power of governor to give directions 4. Hkma continues its focus on corporate governance with. 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. Appendix 5 the banking ordinance important provisions for the auditor. 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. The banking ordinance provides for the authorization and supervision of authorized institutions so as to provide a measure of protection to. 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. 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 hkicpa. In may 2019, the hkma unveiled a number of measures promoting the development of green finance in hong kong. Prudential regulation of banks in hong kong lexology. Secrecy and safety applying the provisions in the real world.
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. Lombard risk agilereporter delivers these requirements. Hong kong monetary authority hkma news and analysis articles central banking home. 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. This disambiguation page lists articles associated with the title hkma. View regulatory framework of banking institutions from fbe econ6001 at the university of hong kong.