OFFICIAL: SENSITIVE
FOI 3781 -
Document 1
Ministerial Submission
MS23-000080
FOR ACTION - Stakeholder Feedback from Consultations on the Government’s Strategic Plan for
the Payments System
TO: Treasurer - The Hon Jim Chalmers MP
CC: Assistant Treasurer and Minister for Financial Services - The Hon Stephen Jones MP
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Key Initiatives
Reduce the prevalence of scams and fraud
Feedback: s 22
Proposed Approach for the Strategic Plan:
Consumer
The Strategic Plan can note the Government initiatives to combat scams
groups and the ACCC specifically want new obligations imposed on banks including:
to identify and prevent scams including:
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•
Government's payment system reform agenda: The Government
has already committed to consulting in 2023 on a new payments
licensing framework and the Strategic Plan can provide further
details on timeframes. The Government will consider options to
bolster consumer protections against scams in the process of
developing the new licensing framework. The ePayments Code
(currently voluntary) will be made mandatory as part of the
licensing framework. The ePayments Code provides safeguards to
reimburse consumers who lose money to an unauthorised
•
Requiring banks to provide a confirmation of payee service: this
transaction such as when their accounts are hacked. It also places
would see an obligation on banks to provide a service that allows
obligations on financial service providers when a customer
customers to check that the name of the payee matches the
mistakenly sends money to the wrong account number.
account number type on every type of payment. Banks argue
consumer education should instead be the focus to push
consumers towards using the existing PayID service as a safer
transaction method where a confirmation of payee service is
already enabled. To enable a confirmation of payee service on
BECS (direct entry system), banks noted the large investments
needed to upgrade the technology on the legacy BECS payment
system, which industry is transitioning away from.
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Document Outline
- 01 - 230206 - Scams research note PLU
- SCAMS – Payments Research Note
- General Background
- General industry action to date
- Individual industry participants commitments and actions
- Current Obligations for Banks and Financial Institutions
- Confirmation of Payee in Australia
- Other industry, regulator and consumer group positions
- Potential payments measures to combat scams
- International Comparisons
- United Kingdom
- New Zealand
- Netherlands
- Other Notes
- 02 - ABA Meeting Minutes - strategic plan
- Australian Banking Association (ABA)
- Commonwealth Bank of Australia (CBA)
- AUSTRAC
- Victorian Department of Treasury and Finance
- National Australia Bank (NAB)
- Australia and New Zealand Bank (ANZ)
- Digital Transformation Agency (DTA)
- Australian Prudential Regulatory Authority (APRA)
- NSW Treasury
- Australian Consumer and Competition Commission (ACCC)
- Department of Home Affairs
- Australian Payments Plus (AP+)
- Australian Securities & Investments Commission (ASIC)
- Emerging Payments Asia Association (EPAA)
- Zepto
- Reserve Bank of Australia
- Cuscal
- Fintech Australia + others
- Consumer Action Law Centre, CHOICE and Financial Rights Legal Centre
- Mastercard
- Westpac
- American Express (AMEX)
- AusPayNet
- Australian Financial Markets Association
- Public Fundraising Regulatory Association
- Tech Council of Australia
- Department of Finance
- VISA
- PayPal
- Google
- CMSPI
- Amazon
- 03 - MS23-000080 - Stakeholder Feedback for Strategic Plan
- 04 - One pagers - stakeholder feedback on strategic plan
- Key issues and initiatives
- 1. Modernising payments infrastructure and regulatory framework
- a. Decommissioning legacy payment systems
- b. Facilitate development of new and more efficient payment infrastructures
- c. Updating the regulatory framework and implementing a licensing regime
- 2. Consumer protections – scams and fraud
- 3. Enhanced regulator collaboration
- 4. Inclusion of key initiatives from the Government’s digital economy strategy
- Other initiatives
- 5. Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF)
- 6. International Payments-Related Initiatives
- a. Cross border payments
- b. Migration to ISO 20022
- 7. BNPL
- 8. Interchange fees
- 9. Least-cost routing
- 10. Digital assets and currencies including CBDC, global stablecoins
- Form, structure, and annual review of the strategic plan
- 11. Form of strategic plan
- 12. Process for annual review and enforcement
- 05 - One Pagers on Strategic Plan Initiatives
- 06 - Policy Development - Payments System Measures to Combat Scams
- 10 - Briefing Paper CoP Isityou Aug23 v1.3
- 11- Draft one pager ePayments Code
- 12- Briefing paper provided by Isityou Feb 2023