Dealing with Digitally-Enabled Scams – MAS and IMDA Launch Consultations on Duties and Liability of Financial Institutions and Telcos

As digital payments and transactions continue their rapid growth, so too has the risk posed by digitally-enabled scams. The Singapore regulators have sought to implement greater certainty in this regard by introducing relevant frameworks and guidelines. The Monetary Authority of Singapore (“MAS“) and the Infocomm Media Development Authority (“IMDA“) are now looking to establish specific measures to address the responsibilities, duties and liability of the relevant parties – in particular, financial institutions (“FIs“) and telecommunication operators (“Telcos“). The following consultations have been launched:

  • Shared Responsibility Framework: MAS and IMDA published a joint consultation paper proposing a Shared Responsibility Framework (“SRF“) specifically dealing with phishing scams. The SRF sets out anti-scam duties for FIs and Telcos and proposes a “waterfall approach” for sharing losses.
  • E-Payments User Protection Guidelines: MAS also published a consultation paper on proposed enhancements to the E-Payments User Protection Guidelines (“EUPG“). The enhancements seek to address digitally-enabled scams by including established anti-scam measures and enhancing the duties of responsible FIs and consumers.

The proposed SRF and enhancements to the EUPG are important developments for FIs, Telcos and consumers alike. Parties may wish to provide feedback and comments in response to the relevant consultations, which close on 20 December 2023.

This Update highlights the key features of the proposed SRF and the proposed enhancements to the EUPG.

For more information, click here to read the full Legal Update.

CONTACTS

Head, Financial Institutions Group
+65 6232 0456
Singapore,
Head, Technology, Media & Telecommunications
+65 6232 0751
Brunei, Singapore,
Deputy Head, Financial Institutions Group
+65 6232 0482
Singapore,
Deputy Head, Technology, Media & Telecommunications
+65 6232 0786
Singapore,
Deputy Head, Technology, Media & Telecommunications
+65 6232 0738
Singapore,

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