Hong Kong Monetary Authority: Increasing Trend of Customer-Authorized Trading Scams, Hoping Banks Will Implement Loss Recovery Arrangement Guidelines This Year

On January 21st, Jinshi Data reported that the Hong Kong Monetary Authority stated that the number and amount of losses related to scams involving authorized trading by clients are increasing. The Authority is actively studying providing guidance to the industry for handling claims for losses related to scams, and hopes to implement the guidance within this year. The Hong Kong Monetary Authority replied that when dealing with claims for losses due to authorized trading, it is different from unauthorized trading. The Authority initiated discussions with major banks last year and will continue related work. The Hong Kong Monetary Authority mentioned that although the implementation of 'Smart Safe' involves complex changes to the banking system, the Authority encourages banks to implement it in phases without affecting existing services. The Authority expects banks to launch 'Smart Safe' by September this year or earlier, and fully implement relevant measures by the end of the year.