Weekly Update: 19 May 2023

“Given every minute can be crucial in disrupting scams, the launch of the Fraud Reporting Exchange is a major development.” 

ABA Chief Executive Officer Anna Bligh

Feature:

The new Fraud Reporting Exchange (FRX) was officially launched this week by ABA CEO Anna Bligh, Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP, and AFCX Managing Director David Pegley, at Westpac’s Financial Crime Hub in Sydney. 

The new digital platform will facilitate the quick reporting of fraudulent payments en route or transferred to another bank. This will help disrupt fraudsters and scammers by allowing the reporting of scam payments in close to real time, boosting the likelihood that funds can be frozen and returned to customers.    

There are 17 banks already onboard or in the process of joining the FRX, which is owned and operated by the Australian Financial Crimes Exchange (AFCX), an independent body built and funded by Australian banks. Read more.

ABA CEO Anna Bligh and Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP, tour the Financial Crime Hub in Parramatta.

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Parliamentary Update:

• On Monday in Canberra, Minister Jones held a press conference announcing new details of the National Anti-Scams Centre (NASC), which will sit within the ACCC and be operational from 1 July 2023. Key parts of the announcement include:
  • An investment in technology that will assist information sharing among law enforcement, banks, telecommunications companies, social media platforms and the regulators, helping them to act as quickly as possible. 
  • The establishment of ‘fusion cells’ to fight specific types of scams. 
  • Greater resources for educating consumers on how they can protect themselves against scammers. 

Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP announces details of the National Anti-Scams Centre

• Following the press conference, Minister Jones hosted an industry and stakeholder roundtable on fighting scams, which the ABA attended.  
• In other news, Treasurer Jim Chalmers issued a media release on Fitch Ratings affirming Australia’s AAA credit rating.  
• Assistant Minister Andrew Leigh issued a media release on the Government’s new complaints mechanism for consumer and small business advocates, which will sit within the ACCC.  
• The Senate Rural and Regional Affairs Committee held public hearings on branch closures in Cloncurry and Ingham, Queensland.  
• Opposition Treasury spokesperson Angus Taylor spoke at the National Press Club on the Australian economy and the inflation challenge.

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Policy Update:

• The ABA this week:
  • held a briefing for members – delivered by the Department of Climate Change, Energy, Environment and Water (DCCEEW) – about the key energy efficiency and climate policy announcements from the recent Federal Budget. 
  • participated in a ‘Shared Responsibilities into Drought’ working group meeting held by the Department of Agriculture, Fisheries and Forestry, and received an update by government on their work relating to drought policy, the Future Drought Fund and National Drought Forum.  
  • was briefed by the Office of the NSW Building Commissioner on an Asset Impact (Embodied Carbon) tool that is being developed to measure the emissions impact of construction of new residential buildings in NSW.  
  • attended, along with the GST and Tax working group members, the fourth annual meeting with the ATO. The ATO’s Deputy and Assistant Commissioners described the restructure of the ATO client engagement group, gave a budget update about impacts on the banking industry, and an update on the PCR framework. Support for small businesses and increased regulatory burden were also discussed. 
  • attended the Financial Counselling Australia Conference in Canberra.

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Regulatory Update:

• Australian Prudential Regulation Authority (APRA) has finalised new requirements and guidance that aim to strengthen recovery and resolution planning. Read more here.  

Economic Update:

• The March Wage Price Index shows a 3.7 per cent increase in wages compared to March quarter 2022. This consisted of a 3.83 per cent increase for private sector wages and a 2.95 per cent increase for public sector wages, Figure 1.  

Figure 1: Wage Price Index, Public and Private sectors, March 2009 – 2023, Index 

Source: ABS, Wage Price Index, Table 2; ABA analysis 

• Figure 2, below, shows that the portion of the Wage Price Index increases are mostly driven by individual arrangements, with increases to the minimum wage (by way of awards) typically only occurring in the September quarter, and even then trailing the increases observed in enterprise agreements and individual arrangements. 

Figure 2: Contributions to Wage Price Index, By method of setting wages, March 2018 – March 2023, % 

Source: Wage Price Index, ABS analysis.

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Communications and Media Update:

• Following a press conference to launch the new Fraud Reporting Exchange, we issued a media release here and also shared the news on our LinkedIn channel here.  
• Key media reports on the FRX include:
  • ABC TV – Banks unveil ‘world-leading’ weapon to fight scams  
  • The Australian – Banks launch anti-scam tool to freeze fraudsters’ funds  
  • The Guardian – Australian banks announce new anti-fraud platform to help quickly freeze scam payments  
  • IT News – Banks launch digital Fraud Reporting Exchange  
• The news was also reported on Channel 10, SBS, Channel 9, Sky News, 2GB, 6PR Perth, and ABC Drive Sydney and Melbourne. 

Upcoming Events:

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Submissions Lodged:

• Data Standards Body – Decision Proposal 288 (Non-Functional Requirements Revision) – ABA follow up response. 

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Upcoming Submissions:

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Selected Media:

• AFR – ‘Consent fatigue’: Banks warn of overreach in protecting data privacy  
• The Australian – ‘Kickstart or be kicked: RBA’s grim warning on productivity’ 
• AFR – Apple lets iPhones accept card payments for merchant customers  
• The Australian – Wages data no smoking gun but RBA cautious.  
• AFR – Westpac places immediate ban on payments to Binance crypto exchange
• The Australian – Apple’s bid to kill payments terminals

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