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  • OM-3.1 OM-3.1 Electronic banking

    • OM-3.1.1

      This chapter provides information on the Basel Committee papers that the Agency requires the relevant licensees to use as guidance on electronic banking risk management principles and best practice.

    • OM-3.1.2

      The Agency considers that the provisions of the following papers represent best practice and provide guidelines for recognising, addressing and managing risk associated with this area. Banks should take appropriate steps for the implementation of relevant recommendations set out therein:

      (a) 'Risk Management for Electronic Banking and Electronic Money Activities' issued in March 1998 (see section OM-B.1 for further references to the paper)
      (b) 'Risk Management Principles for Electronic Banking' issued in May 2001 (see section OM-B.1 for further references to the paper)

    • OM-3.1.3

      The Agency specifically urges the licensees to use the 'Fourteen Risk Management Principles and Sound Practices' set out in the Basel's Committee paper stated in paragraph OM-3.1.2(b) above, as guidelines, in order to recognise, address and manage risks associated with e-banking in a prudent manner. The paper stated in paragraph OM-3.1.2(a) above, should be used as guidance for best practice in this area.