MAS published a guidance to enhance operational controls in Payments and Electronic Funds Transfer (EFT) operations. MAS conducted thematic inspections targeted at strengthening banks’ operational controls in their Payments and EFT operations from 2016 to 2019. MAS inspected and benchmarked selected banks whose operations ranged in size and complexity and covered the banks’ Treasury/Global Markets, SWIFT Messaging, Cash/Remittances, Trade Finance, and Wealth Management businesses. This guidance summarizes the key inspection findings and elaborates on how banks’ controls in Payments and EFT operations should be enhanced.
The key findings and recommendations in the guidance are related to improving governance and management oversight, enhancing operational and system controls, and strengthening detection capabilities. Banks should incorporate learning points from the guidance in a risk-based and proportionate manner, giving proper regard to the profile of their business activities. Banks should remain vigilant to the evolving nature and impact of payment fraud risks, as they continue to enhance their risk controls and secure their IT environment. MAS held industry sharing sessions in October 2019 to share observations with the industry following the thematic inspections.
Keywords: Asia Pacific, Singapore, Banking, Insurance, Securities, Operational Risk, Governance, Proportionality, MAS
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.