MPs lambast fraud reimbursement proposals

"Victims of APP fraud have been waiting more than long enough." A cross-party committee of parliamentarians has berated proposals for the Payment Systems Regulator to hand over the APP fraud reimbursement scheme to industry body Pay.UK, claiming this would cause further unacceptable delays, conflicts of interest and issues with enforcing the scheme. Denis O'Connor reports.

Denis O'Connoris a fellow of both the Institute of Chartered Accountants in England & Wales and the Chartered Institute of Securities and Investment. He was a member of the British Bankers' Association Money Laundering Committee from 2003-10 and a member of the Joint Money Laundering Steering Group's board and editorial panel between 2010 and 2016. He has been a frequent speaker at industry conferences on financial crime issues, both in the United Kingdom and abroad.

Members of the House of Commons' Treasury Select Committee have said that proposals to delegate scam reimbursement to a body controlled by the banking industry are "fundamentally flawed". In a new report, [1] the Committee criticises the "painfully slow" implementation of mandatory reimbursement for fraud victims and objects to proposals by the Payment Systems Regulator (PSR) to hand the refund process over to an industry body.