On 03 Dec 2024, the HKMA proposed mandatory 'Money Safe' protection for retail banking customers to safeguard deposits from outflows, requiring verification for fund releases, and an option to disable internet banking setup (excluding digital banks). AIs must implement MS by 31 December 2025 and the disabling option by 30 June 2025, with phased rollout encouraged.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 03 Dec 2024, the Hong Kong Monetary Authority (HKMA) issued a circular proposing enhanced customer empowerment measures to strengthen anti-fraud and scam protection through the introduction of 'Money Safe' (MS) protection and an option to disable internet banking platform setup for retail banking individual customers.
Money Safe Protection Requirements
The HKMA proposes that Authorized Institutions (AIs) must provide MS protection to retail banking individual customers, enabling them to safeguard a portion of their bank deposits from fund outflows. Customers may release MS protection only after AIs complete a verification process. AIs are also encouraged to offer MS or similar protection to other individual customers (e.g., private banking clients) based on their specific needs. The detailed requirements for MS are specified in the Annex.
Internet Banking Platform Disabling Option
To complement MS and mitigate fraud risks from manipulated internet banking setups, AIs must provide retail customers (excluding digital banks) the option to disable the setup of internet banking platforms (including mobile banking) for their accounts. This option, which requires a customer verification process similar to MS release, cannot be changed without such verification. The measure explicitly excludes digital banks.
Implementation Timelines
All retail banks (including digital banks) must introduce MS protection for retail individual customers as soon as practicable, preferably by 30 September 2025, and no later than 31 December 2025. Retail banks (excluding digital banks) must implement the internet banking disabling option as soon as practicable, preferably by 30 June 2025, with flexibility for institutions facing genuine difficulties to discuss timelines with the HKMA.
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