MAS’s framework for loss-sharing for bank scam victims “taking longer than expected”

Singapore’s financial regulator expects to publish the draft framework in the coming months.

The Monetary Authority of Singapore (MAS) said that it plans to publish the draft framework for sharing of losses affecting scam victims “in the coming months.”

In a press release, MAS admitted that development of the framework is taking longer than expected.

“The process of developing the framework is, however, taking longer than expected in view of the complexity of the issues and the importance of ensuring that the loss sharing and accountability approach incentivises all key parties in the ecosystem to be vigilant against scams,” MAS said in a statement.

“MAS is keenly aware of the importance of this framework and will publish the consultation paper as soon as possible,” the regulator concluded.

MAS kicked off the creation of the framework in February after one of Singapore’s major lenders, OCBC, reported that several of its customers have fallen prey to an SMS phishing scam. MAS had said then that it planned to publish the framework within three months’ time.

OCBC had shouldered the losses of at least 30 customers, tagging it as “goodwill payouts.” MAS later clarified that the payouts are “a one-off gesture” and do not set a general precedent for future cases.

MAS had since teamed up with the Association of Banks in Singapore (ABS) and introduced additional measures to bolster digital banking security, which include the removal of clickable links in emails and text messages sent to customers, and setting a new notification system for money transfers and changes to account details.