Jack Wilson

On 12 July the Payment Systems Regulator published their latest policy statement on the forthcoming changes in relation to APP fraud set to kick in from 7 October 2024 It states that: 👉 PSPs must register with Pay.UK by 20 August 2024 👉 This will help identification of a PSP as being in scope and help facilitate the shared directory - the FPS Reimbursement Directory (i.e. contact details for PSPs to communicate re notification by a customer in relation to APP fraud). 👉 The data PSPs need to retain and report to Pay.UK (so that compliance with the rules can be monitored) 👉 The limits on use and disclosure of the data captured by Pay.UK 👉 The expectations on informing consumers of their rights. It is clear the 7 October deadline is achievable in the eyes of the Payment Systems Regulator. Given the volume of APP fraud that continues to take place, we are expecting to see an increase in consumer fraud disputes as well as disputes between PSPs in relation to when a receiving bank might challenge the decision making processes of the customer's bank on assessing, for example, if an event was in fact a first party fraud or if there were grounds for arguing gross negligence. If you have any questions around the topic please reach out to Rebecca Craig in our team, an experienced litigation lawyer specialising in Authorised Push Payment Fraud cases supporting clients who have been victims in this area and working with the banking industry around the Contingent Reimbursement Model (CRM).

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The Commerce Commission has released its draft determination on our application for authorisation this week. We’re seeking permission to work with open banking stakeholders to make partnering simpler and more efficient, including an accreditation scheme and common terms and conditions for banks and third parties to use. The Commission has proposed approval of our application with conditions. We’re reviewing the draft determination in detail before giving our feedback as part of the process. We’re confident this type of partnering framework will make it easier for banks and third parties to work together – ultimately accelerating the growth of open banking in Aotearoa New Zealand.  Read more on our website here: https://lnkd.in/gTW7m_Q3 #OpenBanking #APICentre #PaymentsNZ #FuturePayments 

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Financial Conduct Authority Confirms Anti-Greenwashing Guidance and Proposes Extending Sustainability Framework Sacha Sadan, Director of Environmental, Social and Governance, FCA, said: “Confirming the new anti-greenwashing guidance and our proposals to extend the Sustainability Disclosure Requirements and investment labels regime are important milestones that maintain the UK’s place at the forefront of sustainable investment. Our good and poor practice anti-greenwashing examples will help firms market their products in the right way. We continue to work closely with the ASA and CMA to address greenwashing. “Consumers care about investing in products that have a positive impact on the planet and people. That’s why we want to boost the integrity of the market and ensure people can make informed decisions about how to invest their money.” https://lnkd.in/efFqsgrR #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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Banking Complaints Surge as Which? and Payments Association Lock Horns Over Fraud Rules Which? and The Payments Association are at odds over their approach to tackling payment fraud as new figures show soaring scam cases. Read More: https://lnkd.in/eC9pRWGe

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😡 The UK’s City minister has lashed out at financial regulator’s ‘name and shame’ proposals and its tough approach to regulating digital assets – saying the Financial Conduct Authority’s priorities are massively out of step with the banking industry. ❌ “The signal to international investors and people in this country is that the regulator still doesn’t get it,” said Bim Afolami MP, speaking at the Financial Times’ Crypto and Digital Assets summit on May 8. “The regulators need to … stop doing things like that.” 🇬🇧 Afolami’s public remarks on the FCA’s plans to name and shame financial institutions under investigation are the strongest yet made by a government minister.  📉 In a rare intervention in April, chancellor Jeremy Hunt called on the conduct regulator to reconsider its proposals, arguing that they detracted from the regulator’s duty to stimulate growth. ⚠ Afolami said that he “completely agree[s]” with Hunt’s comments, saying the naming proposals and the FCA’s diversity consultation, which could see executives’ private lives probed by their employers for evidence of bullying, as objectives the regulator should stop focusing on. 🗣 He told the FT Live London summit: “When they say they don’t have resources sometimes to deal with certain things, I say, well, stop focusing on things that are non-core – like naming and shaming or this diversity consultation.” Story by Ellesheva Kissin. 👉 https://lnkd.in/eqRJTN6g #FTLive #bankingindustry #NFR

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💡 Identity Crisis: Consumer and corporate verification in a state of flux. 🚨 In the UK alone, there were 1664 recorded money laundering events last year, and 55% of businesses experienced known or suspected fraud attempts. 📄 FullCircl's latest guide provides a comprehensive overview of developments in the identity verification space, including an actionable 4-step framework to approaching the market. 👇 Download today to transform your compliance efforts. https://hubs.li/Q02CbPwr0 #identityverification #IDV #ID&V #compliance #regtech

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🕵️‍♂️ New fraud rules coming into force today have been condemned for failing to make banks report fraud to UK law enforcement agencies, writes Ellesheva Kissin. ⚠️ The controversial rules, which require all payment providers to reimburse victims of authorised push payment fraud, are a missed opportunity to compel banks to provide intelligence to agencies with the power to prosecute, say leading industry players. 📢 The issue was aired at a Labour party conference fringe meeting last month, at which politicians were grilled on how the new rules would work. 🔍 “All fraud is going to go dark…If there’s no intelligence, are we not actually just making it much easier for them?” asked one participant, who did not give their name. They warned that law enforcement agencies were deeply critical of the rules. 📉 Fraud is already significantly underreported. Law enforcement figures currently estimate that only 14 per cent of frauds are reported to them, according to Kathryn Westmore, a senior research fellow at the Centre for Finance and Security (CFS) at RUSI. 🚨 A prominent law enforcement official, who did not wish to be named, agreed the rules are “a problem” for failing to loop in the police. 📋 “Many from law enforcement circles would probably prefer to mandate reporting to police before reimbursement, just like you’d have to have a crime number if burgled before reporting to your insurance company,” the official said. 👀 Read more below https://lnkd.in/dhdgNqwe #APPfraud #fraud #APP

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FCA Regulatory Round-up for April 2024 - Consumer Support RFI #consumersupport #customeroutcomes #vulnerabilitymanagement The Financial Conduct Authority has announced a #ConsumerDuty information request on consumer support in their April regulatory round-up. They will be undertaking a two-stage multi-firm review of how firms are supporting their consumers. In the first stage, in Summer 2024 they will contact around 400 firms across different sectors to get insight into the levels of support provided. In the second stage, in Autumn 2024, they will request more detailed information from a smaller sample of firms on their consumer support offer. The aim of this work is to identify and share good practices and challenge firms who offer poor levels of support to customers, including those with characteristics of #vulnerability. This may include Closed Products. I have referenced this following the Sheldon Mills 'Art of the Possible' speech on 20/2/2024, where he focused on some of the risks. They will share the findings of the review in early 2025. It is not clear whether this is running alongside or part of the vulnerability guidance (FG21/1) review featured below. Peter Wordsworth Chris Warburton Jamie Davies Helen Lord Kenneth Doherty Gillian Doyle

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On October 3, HM Treasury announced new legislative powers allowing banks to delay suspicious payments for up to 72 hours, enhancing consumer protection against fraud. The proposed rules, introduced by Economic Secretary Tulip Siddiq MP, aim to prevent the growing number of scams targeting vulnerable individuals across the UK. Key Highlights: - Extended Delay Window: Banks may now delay payments for 72 hours when fraud is suspected, providing crucial time to investigate. - Targeting High-Risk Scams: The rules address fraud tactics, including romance scams and high-value purchase scams, by allowing banks to intervene before funds reach fraudsters. - Customer Communication: Banks must inform customers about delayed payments, explaining any steps required to release funds and compensating for any incurred fees due to delays. Leaders from HM Treasury, UK Finance, and consumer advocacy group Which? have praised the measures, emphasizing the critical role of careful, targeted use in reducing financial and psychological harm. For updates on anti-fraud measures in the UK, unlock cutting-edge legal intelligence with our subscription free platform—join us today! Visit https://lnkd.in/gZmkUPim to learn more. #UKFinance #ConsumerProtection #AntiFraud #BankingSecurity #HMtreasury #GRI

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The Financial Conduct Authority has set out its stall to strengthen safeguarding rules for #payments and e-money firms. Firms will need to engage with the consultation, which closes on 17 December, and then get ready for extensive changes to how they safeguard relevant funds. The first rule changes are likely to apply from Q3 2025, with more fundamental reform to follow. Read more in our latest #Tech Insight. #fintech #FCA

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The Financial Conduct Authority has launched a consultation on new guidance to help payment service providers (PSPs) combat authorised push payment (APP) fraud. These proposed changes will focus on a risk-based approach, allowing PSPs to delay payments when fraud is suspected while ensuring that legitimate transactions are processed efficiently. With APP fraud losses reaching £459.7 million in 2023, it's crucial for firms to understand these updates and prepare for the new upcoming changes. Discover how these new FCA guidelines could impact your payment processes and what steps your firm needs to take to stay compliant. https://lnkd.in/eqHCexEz #FCA #APPFraud #Payments

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This week in banking news – banks to delay payments up to three days to investigate fraud, Visa Direct and APA partner, and Janet Yellen cautions against private credit risk The UK Treasury will empower banks to delay payments by up to 72 hours to investigate suspected fraud. While the increased fraud protection could increase confidence in the UK payment system, it is also likely to disrupt the speed of business transactions, especially for companies relying on rapid payments to maintain cash flow and meet supplier obligations. The impact of these cash flow challenges will be borne largely by SMEs. While SMEs deal with the added pressure of possible delayed cash inflows, what returns will the banks be making on their additional cash holdings, in the name of fraud protection? In other banking news: Global - Janet Yellen has called for increased regulatory vigilance over the growing systemic risks posed by private credit and non-bank lenders.   United Kingdom - Bank of America expands its Virtual Payables capabilities in EMEA with the launch of Virtual Payables Direct. Australia - Westpac has sold its remaining auto finance division to non-bank lender Resimac. - APRA has revoked the licenses of International Bank of Australia and its parent company upon request. Singapore - ANZ joins the MAS-led initiative to explore the use of tokenised real-world assets in financial markets. - Atlantic Partners Asia partners with Visa Direct to handle higher trade sizes and offer global payment services. United States - Apollo Global Management sets a goal to more than double its assets under management to $1.5 trillion by 2029, positioning itself to compete directly with banks. - Wells Fargo and Fiserv will terminate their long-standing merchant acquiring joint venture in 2024. #bankingnews #marketintelligence #financialservices #globaltrends Want to start your week with the intelligence behind leading decision-makers? Read the full stories and subscribe to East’s banking news in the comments below

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📢Bank payments to be delayed up to 72 hours to combat APP scams📢   The UK government has proposed new rules allowing banks to delay payments by up to 72 hours to investigate fraud, particularly to combat authorised push payment (APP) scams 🤝   This change allows banks more time to stop suspicious transactions, offering better protection for customers targeted by fraudsters! Banks will still be required to compensate customers for any related fees, and the delay is aimed at reducing the millions lost to scams annually❌   While these proactive measures are critical in the fight against rising fraud and enhance security, they may also slow down the efficiency of instant payments globally, as delays could affect user trust in the system's speed and convenience, potentially stalling the development of faster cross-border payment solutions.   What's your take on this?   #FraudPrevention #Banking #APP #OpenBanking #PLS #PaymentsLeadersSummit #PaymentsIndustry #CrossborderPayments #InstantPayments

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The FCA Practitioner Panel has published its response to the FCA's Call for information (CfI) on big tech and digital wallets, noting: 👉That digital wallets are becoming a critical part of payments infrastructure 👉The implications of the prevalence of big tech 🧐 The need for the regulator to provide consumers with appropriate understanding, protection, and choice 👉Clarification of proper apportionment of responsibility when things go wrong between digital wallet providers and individual payment providers would be welcome Access the full response here - https://pimfa.cc/bljaL #digitalwallet #regulation #technology

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Finally - a FREE EOY KRI Template built by financial crime professionals for financial crime professionals 😊 Our CEO & Co-Founder, Natasha Vernier, who served as the Head of FinCrime at Monzo Bank, knew all too well how time-consuming an End-of-Year KRI report can be, especially when juggling dozens of other responsibilities 🫠. So she did the obvious thing and created a template that can be used to easily communicate to key stakeholders how well the KRIs are performing that year 😎 Just click the link below to download our End-of-Year KRI Template and streamline your compliance processes! 🚀 https://hubs.ly/Q02DzLhJ0 #Compliance #FinancialCrime #KRIs #RiskManagement #FreeTemplate #Cable #CableTech

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🔍 Amid the recent sound and fury over timelines and thresholds of reimbursing victims of authorised push payment fraud, the most significant issue around is being overlooked: preventing the scam in the first place, writes Nicky Goulimis of Tunic Pay. 💡 The debate sparked by the UK regulator’s decision to slash maximum fraud reimbursements from £415,000 to £85,000 represents an opportunity, I believe, to align incentives to reduce losses with an improved customer experience. 💸 What has been under-reported is that banks and fintechs will still have to pay a not-insignificant bill. Research by the Payment Systems Regulator has found that the lower threshold will still cover more than 99 per cent of APP fraud cases by volume, and the remainder of cases will simply be redirected to the Financial Ombudsman Service for further remediation. 🤝 Rather than finger-pointing, the UK sector should focus on how information sharing can benefit both the industry and consumers, reducing fraud likelihood. Read more https://lnkd.in/emGQxQZH #APPFraud #AuthorisedPushPayments #Banking

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