UK Treasury published a statement setting out how UK GVT and UK PSR intend to improve the reimbursement of all the authorized push payment (APP) scam victims.
UK GVT understands there is a voluntary contingent reimbursement model (CRM) code in place already, but the reimbursement to victims of APP scams remains inconsistent.
UK GVT intends to legislate in Financial Services and Markets Bill to enable regulatory action by UK PSR to require banks and other service providers to reimburse all losses.
This will ensure that victims are not left paying for fraud through no fault of their own.
UK GVT will also place a duty on UK PSR which will require it to take regulatory action within a prescribed timescale, and that this duty will then include two main elements.
The duty will first require that UK PSR publishes for consultation, a draft regulatory requirement, to be issued within 2 months of these provisions due to come into force.
Also, to impose regulatory requirement within 6 months of rules coming into force.
Next Steps
UK PSR has confirmed that it now intends to publish a consultation, on its preferred approach to APP scam reimbursement process, sometime during the autumn of 2022.
