Weekly Update: 24 November 2023

“This Scam-Safe Accord is a new offensive in the war on scams. It reflects the banking sector’s unwavering commitment to safeguarding every Australian. It outlines the actions every bank will take to protect Australian consumers and small businesses and to harden the system against scams”

– ABA CEO Anna Bligh on the launch of the Scam-Safe Accord

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Feature:

Banks unite to declare war on scammers   

Australian banks have joined forces to launch a new Scam-Safe Accord to deliver a higher standard of protection for customers and put scammers out of business in Australia.   

This Accord, between Australia’s community owned banks, building societies, credit unions and commercial banks is a comprehensive set of anti-scam measures across the entire industry.  

“This Scam-Safe Accord is a new offensive in the war on scams. It reflects the banking sector’s unwavering commitment to safeguarding every Australian. It outlines the actions every bank will take to protect Australian consumers and small businesses and to harden the system against scams,” said ABA CEO Anna Bligh.  

“The initiatives we launch today are a significant step forward and demonstrate the banking industry’s commitment to fight scams. It doesn’t matter if someone banks with a regional mutual bank or the largest bank in the country, customers can be confident their bank is working hard to protect their money,” said COBA CEO Mike Lawrence.  

At the heart of the Scam-Safe Accord is a $100 million investment by the industry in a new confirmation of payee system to be rolled out across all Australian banks. Confirmation of payee will help reduce scams by ensuring people can confirm they are transferring money to the person they intend to.   

Read more. 

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Parliamentary Update:

• Assistant Treasurer Stephen Jones welcomed the ABA & COBA’s Scam-Safe Accord, describing it as “another important step in Australia’s united battle against the scammer scourge”. 
• The Scam-Safe Accord was welcomed by The Small Business Ombudsmen. Read more
• Treasurer Jim Chalmers and the Assistant Treasurer announced that the three bodies that currently oversee financial reporting and set reporting standards – the Australian Accounting Standards Board (AASB), the Auditing and Assurance Standards Board and the Financial Reporting Council – will be combined into a single entity. It is intended that the body will be operational on or after 1 July 2026, subject to the passage of legislation. 
• The Treasurer and Assistant Minister Andrew Leigh announced a review into merger rules and processes to ensure they support competitive markets, economic dynamism, and better outcomes for the Australian people. A consultation paper was released on potential merger reform. 
• The Treasurer also delivered an address to the HSBC Asia Pacific Board Summit in Sydney, on current economic challenges and opportunities.  

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Policy Update:

The ABA:  

• hosted a Future of Banking Webinar, on the topic ‘Working together to combat scams’. The panel discussion was led by ABA Head of Future Policy, Nicholas Giurietto, with the panellists being AFCX Managing Director, David Pegley; Optus Head of Regulatory, Luke van Hooft, and CBA General Manager Fraud and Scams Strategy and Governance, Group Fraud Management Services, James Roberts. 
• attended the Agriculture and Land Sectoral Plan Roundtable hosted by the Department of Agriculture, Fisheries and Forestry (DAFF) on 21 November. DAFF will be issuing the sectoral plan at the end of 2024 and intends to consult throughout next year. 
• attended the Competition Taskforce Mergers roundtable hosted by Treasury on 22 November. 
• and member banks participated in the Customer Advocate and Consumer Representative Forum hosted by CBA. 
• and member banks attended a briefing hosted by the The ACT Human Rights Commission on referral pathways for the reporting of financial abuse of vulnerable adults in the ACT. 
• attended a roundtable hosted by The Attorney General’s Department for ABA members as part of their consultation on addressing financial elder abuse and achieving greater consistency in laws for financial enduring powers of attorney (EPOAs). 
• and McKinsey hosted a Line 1 Risk Roundtable on operational resilience with a focus on implementation of APRA’s CPS230 on 23 November.    
• attended Treasury’s Roundtable Session on the Sustainable Finance Strategy on 23 November.

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Regulatory Update:

• The ACCC have warned consumers to watch out for scam websites impersonating high-profile Australian retailers. Read more 
• ASIC Annual Forum 2023: Impact of AI on financial services. Read more 
• Keynote opening address by ASIC Chair Joe Longo at the ASIC Annual Forum, 21 November 2023. Mr Longo described ASIC’s purpose as the safety and integrity of the financial system and good outcomes for the community. Read more 
• ASIC announces 2024 enforcement priorities. Read more 
• New Commissioners commence at ASIC. Read more 
• APRA releases superannuation statistics for September 2023. Read more 
• Payments System Board Update: November 2023 Meeting. Read more 
• ASIC and RBA Acknowledge ASX’s CHESS Solution Design Announcement. Read more 

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Economic Update:

• Australia’s population is projected to increase to between 29.2 and 30.8 million by 2032.  
• According to ABS Monthly Employee Earnings Indicator (based on data collected from ATO’s single touch payroll accounting software) wages and salaries paid by employers increased 8.4% in the year to September 2023. 
• The industry with the strongest wages and salaries growth in the 12 months to September 2023, was electricity, gas, water and waste services (14.9%) while retail trade had the weakest growth (5.1%), 

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Communications and Media:

It was announced this week that banks will contribute $19 million over three years to the Government’s voluntary financial counselling model launched on Tuesday by Minister for Social Services, Amanda Rishworth. “Banks large and small are proud to be funding the lion’s share of this initiative,” said ABA CEO Anna Bligh. “Financial counsellors provide a critical service to Australians when they are making some of the most difficult decisions in their lives. It is critical they have resources to do that important work.” 

This funding will help increase the availability of free, independent counselling services for people experiencing financial difficulty who need advice.  

Read our media release here.

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Upcoming Submissions:

Published submissions

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Selected Media:

• SMH – ‘New offensive in the war on scams’: Banks to name-check money transfers 
• Australian – Bankers unite in a $100m alliance to take on and defeat scammers 
• Daily Telegraph – Facial ID on the cards for Aussies opening new bank accounts to combat scams 

Weekly Update