UK Finance, the representative trade association for consumer banking and financial transactions, has confirmed that it will not be launching its ‘Confirmation Payee System’ in 2019.
This week, Stephen Jones confirmed the delay of the Payee System to the Commons’ Treasury Committee, detailing those banking stakeholders could not ensure the capabilities of their IT frameworks to implement necessary changes.
“This is a big change at a time of a lot of change,” Jones told the Treasury committee
Expected to be launched in July 2019, the Payee System would enforce that all UK digital finance transactions reference the exact user name-match, strengthening UK banking safeguards against fraud, pay scams and criminal actors.
In its working mandate, The Payee System demands that bank, merchant and processing incumbents reference recipient name-checks, security criteria that digital enterprises can choose to ignore.
Updating government stakeholders, UK Finance was adamant that the Payee System remains a key project to deliver for 2019 and beyond, stating that UK commercial businesses are required to move beyond standard sort-code and account number security referencing.
The Payee System’s compulsory name-check provisions are 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,” the PSR explained in its industry update.
“As it stands, we are still working through the responses to our consultation and so no decisions on timing have been made.”