UK consumer banking and financial services organisation UK Finance has stated that its planned ‘Confirmation Payee System’ will be delayed until 2020.
Planned to launch this July, the Payee System would enforce that all UK digital payment transactions reference the exact consumer name-match, strengthening UK banking safeguards against fraud, pay scams and criminal actors.
The introduction of the Payee System, will demand that bank, merchant and processing incumbents reference recipient name-checks, a security criteria that digital enterprises can choose to ignore.
Updating the Common’s Treasury Committee Stephen Jones, Chief Executive of UK Finance stated that Payee System’s launch had been delayed, as regulatory stakeholders could not ensure that all banks could implement necessary IT changes.
This is a big change at a time of a lot of change,” Jones told the committee.
Despite the delay, UK Finance backs the initiative, detailing that all UK commercial stakeholders should be forced to move security safeguards beyond simple sort-code and account number referencing.
The Payee System’s compulsory name-check provisions, will be supported by new laws set by transactional regulatory authority – the Payments System Regulator (PSR).
“We want to see Confirmation of Payee brought in as soon as possible and also make sure that when it is introduced, it is an effective way to stop this crime taking place.” Details the PSR in its industry update.