HKMA to Launch Pilot Commercial Data Interchange Platform by Year-End
The Hong Kong Monetary Authority (HKMA) hosted a symposium on the Commercial Data Interchange (CDI), which is one of the major initiatives under its “Fintech 2025” strategy. CDI is a consent-based financial infrastructure that would enable more secure and efficient data flow between banks and sources of commercial data. Phase 1 of the Proof-of-Concept (PoC), which studied the technical feasibility of the CDI platform, was completed last year. Phase 2 of the PoC is underway, with a focus on using commercial data to facilitate alternative credit scoring by banks. A pilot launch of the CDI is expected toward the end of this year. During the symposium, HKMA also announced the launch of CDI Innovation Hub to facilitate the development and adoption of CDI. In a separate update, HKMA published the second issue of the Regtech Adoption Practice Guide, with focus on anti-money laundering/combating the financing of terrorism (AML/CFT).
This issue of the Regtech Adoption Practice Guide focuses on regtech solutions to assist AML/CFT efforts in the area of ongoing monitoring of customers. The guide provides an overview of regtech solutions for managing AML/ CFT efforts of an organization, specifically in the area of ongoing monitoring of customers. The guide outlines the common challenges observed regarding AML/CFT regtech adoption and shares information on how others have successfully addressed the challenges to successfully adopt AML/CFT regtech solutions. The guide will help banks assess whether they have the appropriate governance, controls, skills, infrastructure and underlying data to enable them to apply regtech solutions in the area of AML/CFT. The Practice Guide introduces commonly observed challenges and developments in the ongoing monitoring of customers and provides practical implementation guidelines to banks on the adoption of AML/CFT regtech solutions. It outlines a general framework for implementation within the AML/CFT context and shares use cases on adoption of regtech solutions to manage the ongoing monitoring of customers.
Keywords: Asia Pacific, Hong Kong, Banking, AML/CFT, Regtech, Commercial Data Interchange, Open Banking, HKMA
Previous Article
FCA Issues PS21/9 on Implementation of Investment Firms RegimeRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.