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OUR MISSION
OUR OBJECTIVES
 
Supervision
Inspections and
Supervisory Reviews
New Legislation
Enhancing Regulatory Frameworks
Market and Business Conduct
Risk Management
B THE FINANCIAL SECTOR: KEY SUPERVISORY
AND REGULATORY INITIATIVES
 
  Enhancing Regulatory Frameworks 45
 
Regulations for Islamic Finance  
45
 
Revision to Requirements on Submission of  
Annual Audited Accounts  
45
 
Revision to Regulatory Framework for Money
 
Changers/Remittance Agents  
46
 
Box 9 – Policy Owners’ Protection Fund Scheme  
46
 
Phase II Amendments to the Securities
 
Futures Act and Financial Advisors Act  
47
 
Keeping Pace with Product Innovation  
49
 
Reviewing the Authorisation Framework for Representatives  
49
 
Establishing Sound Risk Management Guidelines  
49
 
Box 10 – Enhancing Internet Banking Security  
50
 
  ENHANCING REGULATORY FRAMEWORKS

Box 10 Enhancing Internet Banking Security
 

Internet banking has become a mainstream electronic delivery channel for a large number of banks. Bank customers regularly log into banks’ websites to conduct a wide range of both personal and business banking transactions.

In recent years, there has been a marked rise in the sophistication and rate of online phishing scams and other targeted attacks on internet banking. Given the rapid increase in the capture or misappropriation of customer PINs by hackers and cyber criminals globally, there are growing doubts about the continuing reliance on single-factor PINs for internet access to customer accounts and financial transactions.

Since 2003, MAS has encouraged banks to adopt two-factor authentication for internet banking. On 25 November 2005 through a security advisory issued to banks, we set out our expectation that two-factor authentication at login for all types of internet banking systems should be implemented by 31 December 2006. Financial regulators in other countries have also issued similar guidelines on two-factor authentication.