Daily Dash: Hong Kong Tightens Name-Check Rules For Instant Payments

February 27, 2025
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The Hong Kong Monetary Authority has introduced stricter name-matching rules for real-time fund transfers, otherwise known as instant payments, with the aim of enhancing security.

The Hong Kong Monetary Authority (HKMA) has introduced stricter name-matching rules for real-time fund transfers, otherwise known as instant payments, with the aim of enhancing security. 

The new rules, announced in a circular, will require stricter name-matching protocols for Faster Payment System (FPS) transactions and similar intra-bank transfers.

They are in line with efforts underway in jurisdictions such as the UK, EU, Australia and New Zealand, and are intended to minimise erroneous payments and reduce fraud risks.

The HKMA has set a deadline of May 31, 2025 for full implementation of the measures, which will replace previous directives issued in 2021, and financial institutions are expected to update their systems and inform customers accordingly.

Under the updated guidelines, payment service providers (PSPs) will need to implement a mandatory name-matching process for all applicable fund transfers, regardless of transaction amount. 

Institutions may set a threshold for this verification, although it must not exceed HK$1,000 ($128). Previously, name-matching was required only for transactions of HK$10,000 or above.

The HKMA's decision follows concerns that fraudsters have been bypassing existing safeguards by keeping transactions below the previous threshold. 

“It has come to the attention of the HKMA that some scammers pretended to be reputable merchants and deceived customers into making real-time fund transfers below HK$10,000 to evade the name matching process,” the regulator said in the circular. 

By expanding the scope of name verification, the regulatory body aims to bolster consumer protection and prevent financial scams.

In addition to implementing the mandatory name-matching process, institutions must notify customers when name-matching is not applied to transactions below the threshold.

They must also improve their communication efforts to increase awareness of the new verification measures.

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