While there is now a mandatory reimbursement regime and other protections for authorised push payment (APP) fraud for consumer payments made within the UK in GBP using the Faster Payment System and the CHAPS system, the FCA has also told banks and other payment service providers that a combination of their obligation to guard against financial crime and their consumer duty means that firms must also offer the same protection in other scenarios where consumers may be tricked into making payments using their services, such as between payment accounts at the same service provider ('on us' APP fraud).
If you are planning to provide a lower level of protection to ‘on us’ APP fraud reimbursement compared to payments made through FPS and CHAPS, we ask you to contact us to provide an explanation of the steps you have taken to meet those obligations.
Of course, 'consumers' include 'micro-enterprises' (who employ fewer than 10 people and have a turnover or annual balance sheet of up to €2m) and small charities (who have annual income of less than £1m).
The FCA's letter to CEOs also sets out various expectations in relation to the mandatory APP regime, including a reminder on anti-fraud controls and the need to factor in the potential level of fraud reimbursement into firms' working capital calculations.
This post is for information purposes, please get in touch if you require legal advice.
No comments:
Post a Comment