Latest news with #FasterPaymentSystem
South China Morning Post
18-05-2025
- Business
- South China Morning Post
Bank in Hong Kong investigates unauthorised transactions on payment system FPS
A mainland Chinese bank in Hong Kong is investigating unauthorised transactions on the Faster Payment System (FPS) involving one of its clients, the Post has learned, with experts saying breaches on the widely used platform are uncommon and may involve hacking. Advertisement A client of the China Construction Bank (Asia) in Hong Kong told the Post that she had never used FPS but lost HK$20,000 (US$2,560) in two unauthorised transactions via the platform to an account with Ant Bank under a mainland name on April 1. The victim, a businesswoman surnamed Chen, said three other transactions totalling HK$30,000 made consecutively with the first two transfers were blocked by the bank, despite the lender telling her initially that it did not find any problems with its security systems. Chen said she was later asked by the lender to file a report to police, who in turn told her that FPS breaches were uncommon and that her bank had the responsibility to liaise with Ant Bank to reclaim the loss. Chen said that during the process of seeking recourse, she felt furious and helpless as she received little explanation as to how the bank would look into her losses while police had not yet updated her about their investigation. Advertisement 'It was this feeling of being very helpless ... We're not protected by the bank; we're not protected by police,' Chen said.
South China Morning Post
18-02-2025
- Business
- South China Morning Post
HKMA mandates name-matching for transfers above HK$1,000 to combat scams
The Hong Kong Monetary Authority (HKMA) has made it incumbent on banks to conduct a mandatory name-matching process on customers for real-time fund transfers, the latest step by the city's financial regulator to tackle scams. Financial institutions have been urged to adopt 'refined measures' on their instant fund transfer systems such as the Faster Payment System (FPS) and intra-bank fund systems, according to a statement issued by the HKMA on Tuesday. For transactions exceeding HK$1,000 (US$128) or other currencies of an equivalent amount, banks were now required to check customers' names in real time, according to the HKMA. The banks have until the end of May to comply with the measure. A previous announcement by the HKMA in 2021 required banks to conduct the mandatory name-matching process on real-time fund transfers of HK$10,000 or above. 01:33 Hongkongers lose HK$200 million to scams in a week, AI voice-cloning used Hongkongers lose HK$200 million to scams in a week, AI voice-cloning used Transfer instructions that do not pass the mandatory name-matching process would be rejected by the payee institutions, and banks were required to inform the customer that the transfer instruction was unsuccessful or rejected, the statement added.
South China Morning Post
28-01-2025
- Business
- South China Morning Post
How Hong Kong could take the lead in instant payments
Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at [email protected] or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification Hong Kong's dual-track payment architecture – combining the Faster Payment System (FPS) for instant retail transfers and the Clearing House Automated Transfer System (CHATS) for multicurrency wholesale settlements – has positioned our city at the forefront of financial innovation. To maintain this leadership, we must address challenges in banking access and regulatory frameworks that hinder fintech advancement. While other financial hubs still rely on slow and costly Swift transfers, Hong Kong's CHATS handles US dollar, euro and renminbi settlements in Asian hours, complemented by renminbi FPS capabilities. This infrastructure reduces settlement risk and costs for multicurrency investments in Asia-Pacific time zones, making Hong Kong an attractive global wealth management and booking hub. However, significant challenges remain. Before payments are even made, the arduous process of opening bank accounts for businesses stifles growth. Start-ups and small and medium-sized enterprises face lengthy paperwork, in-person visits and high fees. Compare this to some banks in jurisdictions such as Australia which offer streamlined online set-up. Payment operators could have stepped up to fill the void. However, their supervision under Customs rather than the Hong Kong Monetary Authority creates regulatory uncertainty and asset safety concerns. This deters broad adoption of fintech innovation. Singapore has successfully integrated multi-tier payment licensing under its financial regulators, and Australia is working towards a similar goal Major banks sometimes cite anti-money-laundering concerns to justify delays in clients' transfers to smaller financial institutions. Regulator-mandated whitelisting of licensed institutions can help level the playing field, enabling smaller fintech firms to compete effectively with established banks. To accelerate the transition from cheques, Hong Kong should leverage its December 2023 implementation of Unique Business Identifiers to integrate Business Registration Numbers (BRN) into FPS proxy addressing, following models such as Australia's PayID and Singapore's PayNow.
