UK Banks face scam reimbursement law

New laws to protect access to cash and help victims of financial scams in the UK were announced by Her Majesty the Queen.

• Financial Services and Markets Bill will maintain and enhance the UK’s position as a global leader in financial services having left the EU.
• The Bill will protect cash by ensuring continued access to withdrawal and deposit facilities across the UK.
• Banks can be required by the regulator to reimburse victims of authorised push payment fraud.

The new Financial Services and Markets Bill, announced in today’s Queen’s Speech at the state opening of parliament, will support consumers by protecting access to cash. It will ensure the continued availability of withdrawal and deposit facilities across the UK, and that the country’s cash infrastructure is sustainable for the long term.

Cash remains an important payment method for millions of people across the UK, particularly those in vulnerable groups, and the government is committed to preserving it.

The Bill will also enable the Payment Systems Regulator to require banks to reimburse authorised push payment (APP) scam losses, totalling hundreds of millions of pounds each year. This will ensure victims are not left paying for fraud through no fault of their own.

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