Banks still not complying with APP fraud Code, finds Lending Standards Board

A second review of banks’ compliance withthe APP fraud Code reveals that most issues found in the first assessment areunresolved, while some new concerns were identified. The objectives of the Codealong with numerous regulatory obligations are being disregarded, comments DenisO’Connor.

Denis O’Connoris a fellow of both the Institute of Chartered Accountants inEngland & Wales and the Chartered Institute of Securities and Investment.He was a member of the British Bankers’ Association Money Laundering Committeefrom 2003-10 and a member of the Joint Money Laundering Steering Group’s boardand editorial panel between 2010 and 2016. He has been a frequent speaker atindustry conferences on financial crime issues, both in the United Kingdom andabroad.

The Lending Standards Board (LSB) has warnedthose banks who signed up to the Contingent Reimbursement Model (CRM) elementof the Authorised Push Payment (APP) fraud Code that they need significantly toimprove their compliance with the Code. The warning follows a recent LSB review[1] that noted significant matters remain unresolved from an earlier 2019 Codereview, while other issues are now causing concern.