On 25 Oct 2024, the HKMA revised SPM module TM-E-1 'Risk Management of E-banking' to expand coverage to payment card transaction controls, consolidate fragmented security requirements from multiple supervisory documents, and adopt principle-based guidance for risk management. The updated module becomes effective immediately and supersedes all prior related guidance for Authorized Institutions.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Effective Date and Purpose
On 25 Oct 2024, the Hong Kong Monetary Authority (HKMA) issued a revised version of the Supervisory Policy Manual (SPM) module TM-E-1 'Risk Management of E-banking' as a statutory guideline under section 7(3) of the Banking Ordinance, following consultations with industry associations. The revision aims to enhance supervisory guidance on e-banking and payment card services for Authorized Institutions (AIs) by consolidating and updating existing requirements.
Key Regulatory Changes
The revised module expands the scope to explicitly cover controls over payment card transactions, which were previously addressed in separate supervisory documents. It consolidates security measures previously outlined in various circulars and operational guidance into a single, comprehensive framework within TM-E-1, eliminating fragmented references. The module also shifts toward principle-based guidance to strengthen AIs' risk management controls, replacing prescriptive requirements with more flexible, risk-focused expectations.
Implementation and Access
The revised SPM module TM-E-1 becomes effective on 25 October 2024 and supersedes all prior guidance on e-banking and payment card risk management contained in other supervisory documents. AIs may access the updated module via the HKMA's public website and Supervisory Communication Website, with queries directed to the HKMA's
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