Macao’s Financial Institutions Must Comply with Enhanced Regulatory Guidelines

The Monetary Authority of Macao (AMCM) has introduced a series of revised guidelines aimed at optimizing the supervision of financial technology, improving regulatory compliance, security requirements, and development in the sector. These new guidelines aim to promote a robust and resilient financial system, ensuring the stability of the economy.

Key Guidelines Introduced

The AMCM has issued four key guidelines:

• Guideline on Risk Management of Electronic Banking: Focuses on enhancing security measures for financial products and services provided through internet banking, self-service terminals, and phone banking channels. Establishes a fraud monitoring mechanism to identify, mitigate, and reduce the risk of fraud.
• Guideline on Technology and Cyber Risk Management: Aims to improve authorized institutions’ resilience to technology and cyber risk by providing principles and best practices for managing emerging technologies and improving information technology development and operations.
• Guideline on Outsourcing: Outlines the AMCM’s supervisory approach to outsourcing arrangements, including requirements for due diligence, approval, and ongoing monitoring. Emphasizes the importance of ensuring that all outsourcing arrangements are subject to appropriate risk management and control measures.
• Industry Guidance on Cloud Outsourcing Controls: Provides guidance on cloud computing services, highlighting the potential risks associated with their use and the need for authorized institutions to consider major prudential issues before entering into cloud outsourcing arrangements.

Timeline and Compliance Requirements

The revised guidelines come into effect in 2023 and require authorized institutions to:

• Conduct gap analysis within 6 months
• Complete remediation measures within 12 months

To help financial institutions meet these new requirements, Deloitte has prepared an overview of the updated guidelines, highlighting key points and potential compliance obligations. The firm is available to assist clients in meeting their compliance needs and addressing any questions or concerns they may have.

Conclusion

The AMCM’s revised guidelines aim to promote a robust and resilient financial system, ensuring the stability of the economy. Financial institutions must comply with these new requirements by 2023 to ensure continued security and development in the sector. Deloitte is available to assist clients in meeting their compliance needs and addressing any questions or concerns they may have.