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- PSR Confirms £85,000 Cap For APP Scam Reimbursements
- UAE Overhauls AML Oversight
- CFPB Proposes Amending Remittance Transfer Rule To Streamline Consumer Inquiries
- Belgium Sees 50 Percent Surge In Online Investment Fraud In 2024, FSMA Reports
- PSR Issues Final Guidance On APP Scams And Civil Disputes
- FCA Revokes PayAfrique.com's Licence Registration
- Trustly's Ecospend Retains Key Open Banking Contract With HMRC
- UK Regulator Releases Updated Powers And Procedures Guidance
- Swiss Regulator Confiscates $15m From Mirabaud & Cie For 'Serious' AML Failures
PSR Confirms £85,000 Cap For APP Scam Reimbursements
The UK's Payment Systems Regulator (PSR) has confirmed that, from October 7, the maximum reimbursement for victims of authorised push payment (APP) scams via Faster Payments will be capped at £85,000.
In an email circulated on September 25, the regulator said that the decision comes after careful consideration of feedback, with a final policy statement explaining the reasoning behind the decision will be released next week.
The Bank of England has, meanwhile, aligned with this cap for CHAPS transactions, ensuring consistency across major payment systems, and will review the cap within 12 months.
The government of the United Arab Emirates (UAE) has announced that the National Anti-Money Laundering and Combating Financing of Terrorism and Illegal Organisations Committee (NAMLCFTC) will replace the Executive Office for Anti-Money Laundering and Countering the Financing of Terrorism.
All employees of the Executive Office will transfer to the NAMLCFTC, with Hamid Saif Al Zaabi appointed as secretary-general.
“The Cabinet’s decision embodies the directives of the wise leadership and reflects the UAE’s strong and steadfast commitment to protecting the integrity and soundness of the local and global financial system, and taking all necessary measures to combat financial crimes worldwide,” commented His Excellency Khaled Mohamed Balama, governor of the central bank and NAMLCFTC chair.
He continued to say that the UAE’s efforts towards AML/CTF are based on “an integrated approach that reflects the vision of the leadership and the directives of the Supreme Committee Overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism, and on an effective national system and a strong legal and institutional framework”.
CFPB Proposes Amending Remittance Transfer Rule To Streamline Consumer Inquiries
The US Consumer Financial Protection Bureau (CFPB) has unveiled a proposed amendment to the Remittance Transfer Rule.
The change aims to provide clearer guidance for consumers on where to direct specific inquiries regarding international money transfers, potentially resolving issues more efficiently.
Under current rules, remittance companies are required to include contact information for state regulators and the CFPB in payment disclosures.
The proposed amendment clarifies that, for certain issues, consumers should instead first contact their remittance provider, which may save time and reduce unnecessary inquiries to regulatory bodies.
The CFPB will be accepting comments on the proposed rulemaking until November 4, 2024.
Belgium Sees 50 Percent Surge In Online Investment Fraud In 2024, FSMA Reports
The Financial Services and Markets Authority (FSMA) in Belgium has reported a dramatic increase in online investment fraud during the first half of 2024 compared with the same period in 2023.
The regulator recorded a total of 1,332 cases, with scams primarily targeting individuals aged 50 to 69, who it says may be financially flexible but often less familiar with digital investment risks.
The most common scams involved fraudulent trading platforms and cryptocurrency schemes, which accounted for nearly half of all cases. In addition, so-called “recovery room” fraud, whereby criminals falsely promise to recover funds lost in previous scams, surged by 60 percent.
“Every year, more and more consumers contact the FSMA about illicit activities or when they have doubts about an investment offer. This is a positive development, but we see that we need to convince even more Belgians to report fraud,” said Jean-Paul Servais, president of FSMA.
“We are convinced that many victims do not always take the step, sometimes out of shame.”
In response, the FSMA has relaunched its 2023 awareness campaign and continues to push its financial education initiative, Wikifin, to help consumers avoid falling victim.
The regulator is also increasing efforts to block fraudulent websites and is encouraging consumers to report suspicious activity through its new online contact form.
PSR Issues Final Guidance On APP Scams And Civil Disputes
The UK's Payment Systems Regulator (PSR) has released final guidance to help payment service providers (PSPs) distinguish between authorised push payment (APP) scams and private civil disputes.
This guidance, effective from September 2024, is intended to clarify when claims are not reimbursable under Faster Payments and CHAPS reimbursement rules.
According to the guidance, civil disputes, which often arise when consumers do not receive goods or services or find them defective, are not reimbursable unless there is intent to defraud, and the PSR has urged PSPs to carefully assess each claim, considering factors such as the communication between the consumer and the alleged scammer, and the latter’s ability to deliver services or goods.
The PSR has used the final guidance to place emphasis on the importance of evaluating each case on its merits, ensuring that claims are not misidentified, which it warns could harm both consumers and legitimate businesses.
The guidance also outlines core principles and expectations for PSPs to gather and review all relevant information before making decisions on claims.
FCA Revokes PayAfrique.com's Licence Registration
The UK’s Financial Conduct Authority (FCA) has revoked PayAfrique.com Limited’s registration as a Small Payment Institution (SPI) under the UK’s Payment Services Regulations 2017.
The decision, announced on September 20, 2024, was made to protect consumer interests after the firm failed to submit mandatory regulatory returns for 2022 and 2023 despite multiple requests and warnings.
Previously, the FCA had issued a decision notice in June 2024, which went uncontested by PayAfrique.com.
The formal cancellation, effective from September 19, 2024, follows the company's failure to comply with regulatory obligations and a lack of evidence that it had provided payment services in the past 12 months.
Trustly's Ecospend Retains Key Open Banking Contract With HMRC
Ecospend, a subsidiary of Trustly, has retained its open banking contract with the UK's HM Revenue & Customs (HMRC).
Under the re-awarded contract, one of the UK’s most significant open banking contracts to date, Ecospend will continue to provide its account-to-account (A2A) payment services.
These services allow HMRC to process payments across more than 40 tax regimes, including self-assessment, PAYE, corporation tax and VAT.
“As open banking payments require minimal manual data entry and are sent directly from a taxpayer’s bank account using pre-filled HMRC account details, the solution significantly improves payment reconciliation,” said Trustly.
“This means that in addition to cost savings, faster-speeds, and less human error, it is proven to significantly reduce the need for suspense accounts for incoming payments.”
Ecospend won the original contract in 2021, prior to its 2022 acquisition by Trustly. It has since become the single biggest use case for open banking payments in the UK, with £30bn of tax payments processed since launch.
UK Regulator Releases Updated Powers And Procedures Guidance
The UK's Payment Systems Regulator (PSR) has published an updated version of its Powers and Procedures Guidance (PPG), which is effective from September 20.
This revised document outlines how the PSR will exercise its powers and operate going forward.
Originally introduced in 2015 before being revised in 2020, this latest update reflects structural changes and process improvements within the organisation.
Key changes include greater flexibility in deciding who can open enforcement cases, which is expected to improve efficiency while maintaining proper oversight. Additionally, the new guidelines allow for more adaptable resource allocation within enforcement teams, ensuring faster response times and case resolutions.
The PSR has said that it is also reviewing its other guidance documents to ensure alignment with the updated PPG and may seek further consultations in the future if needed.
Swiss Regulator Confiscates $15m From Mirabaud & Cie For 'Serious' AML Failures
The Swiss Financial Market Supervisory Authority (FINMA) has confiscated CHF12.7m ($15m) from local bank Mirabaud & Cie following “serious” violations of anti-money laundering (AML) and financial market law.
In June 2023, FINMA concluded enforcement proceedings against the bank that it had opened in June 2021.
The regulator found that Mirabaud & Cie failed to review and sufficiently document the economic background of client relationships and transactions.
Since 2016, Swiss financial intermediaries have been required to clarify the background and purpose of a transaction or business relationship, if there are indications that assets could originate from crime or tax avoidance.
The bank may not accept any new clients with increased money laundering risks until compliance with the law has been restored, FINMA said.
The ruling has been legally binding since August 2023 and has not been contested.
