On 9 September 2024, the Financial Conduct Authority (FCA) published a Guidance Consultation, GC24/5, setting out proposed changes to its Payment Services and Electronic Money Approach Document to support new legislation to tackle authorised push payment (APP) fraud.
Background
The Payment Systems Regulator has introduced an APP fraud reimbursement requirement within the Faster Payments System, which will come into effect on 7 October 2024. The requirement will require banks and other payment service providers (PSPs) to reimburse payment service users who fall victim to APP fraud in most cases.
HM Treasury has published proposed amendments to the Payment Services Regulations (PSRs 2017) to enable PSPs to delay making a payment transaction where they have reasonable grounds to suspect fraud or dishonesty, with the aim of increasing firms’ ability to tackle APP fraud while minimising the impact on legitimate payments.
FCA’s proposals
To support this policy, the FCA is proposing chang
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