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
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