Circular to licensed corporations, SFC-licensed virtual asset service providers and associated entities Mitigating risks in receiving deposits through simplified eDDA arrangements
What the SFC said
The SFC sets out the risks of simplified eDDA arrangements, where the licensed firm initiates the direct debit setup as payee on its client’s pre-authorisation: impersonation, unauthorised setup requests, and the indemnities firms give their banks. Firms should review these arrangements, assess the risks and implement mitigating measures.
This page is our summary and commentary, not the circular itself — always read the original before acting.
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