Financial regulators in the Crown Dependencies have agreed a common set of principles to underpin the development of a new Authorised Push Payment (APP) fraud framework.
The initiative is being progressed by the Isle of Man Financial Services Authority, Jersey Financial Services Commission and Guernsey Financial Services Commission.
It is hoped this coordinated approach will tackle one of the fastest-growing forms of financial crime.
Engagement will take place with professional bodies and representatives from the Isle of Man banking sector to advance the plans, with an industry outreach session scheduled for September.
Input from stakeholders will inform the framework, with a view to improving outcomes for customers, strengthening confidence in the banking system and helping financial institutions respond more effectively to the evolving threat of APP fraud.
The proposals are intended to support a practical and broadly consistent approach across the Crown Dependencies, while recognising the distinct legal and regulatory environments within each jurisdiction.
APP fraud occurs when customers are deceived or manipulated into authorising payments to financial criminals.
The initial focus will be on retail banking customers and sterling payments made through Faster Payments and CHAPS (Clearing House Automated Payment System).
The approach demonstrates a shared commitment to developing a proportionate and practical APP fraud framework that enhances customer protection, improves fraud prevention, and delivers consistent outcomes across the Crown Dependencies.
Andrew Kermode, head of the FSA’s prudential supervision division, said: ‘APP fraud can have a significant impact on individuals, families and businesses.
‘The financial regulators in the Isle of Man, Jersey and Guernsey are committed to working together to prioritise prevention, detection and customer protection, while promoting a pragmatic approach for the banking sector.’
He added: ‘These agreed principles provide a clear direction of travel, with improved customer outcomes at their heart.
‘We look forward to continuing our engagement with stakeholders as we develop a framework that is both effective in combating fraud and workable in practice.’