Question to the Home Office:

To ask the Secretary of State for the Home Department, what recent assessment she has made of the adequacy of levels of responsibility on (a) banks and (b) receiving firms to (i) share information quickly and (ii) freeze funds in cases of fraud.

The Home Office continues to work with financial institutions, regulators, and law enforcement to ensure responsibilities for preventing and responding to fraud are clear and effective.

The Payment Services (Amendment) Regulations 2024, effective October 2024, granted banks powers to delay and investigate payments suspected of being fraudulent for up to 72 hours. The change is designed to protect consumers from scams and ensure funds can be frozen before they reach fraudsters.

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) introduced new provisions, effective January 2024, that allow anti-money laundering (AML) regulated firms to share customer information, provided UK GDPR safeguards are met. These measures aim to create a networked approach to economic crime risk, enabling faster detection and disruption of fraud.

The Government is working to develop a strategy for cross-system data sharing that brings benefits for the public and private sector. The strategy will enhance the exploitation of the vast datasets held across ecosystem by using modern technology, bringing together organisations and capabilities to better prevent, detect, and pursue economic crime.