FG24/6: Guidance for firms that enables a risk-based approach to payments

Read FG24/6

Why we’re issuing this guidance

On 30 October 2024, the Payment Services (Amendment) Regulations 2024 came into force. This made changes to the Payment Services Regulations 2017 to extend the amount of time that a Payment Service Provider (PSP) has to process an outbound payment when there are reasonable grounds to suspect fraud or dishonesty. To support these regulations, the Treasury asked the FCA to issue guidance to explain how we expected PSPs to apply these legislative changes, taking into account feedback from stakeholders.

In GC24/5, we consulted on adding this guidance to our Approach Document, together with guidance on delaying inbound payments where a PSP suspects fraud.

Following consultation feedback, we are publishing this final guidance setting out:

• the requirements for delaying outbound payments and determining whether the threshold for ‘reasonable grounds to suspect’ has been met
• how PSPs should use the payment delay window
• obligations on PSPs if they delay an outbound transaction
• the treatment of suspicious inbound payments 

Who this guidance is for

• PSPs
• trade bodies representing PSPs
• credit institutions providing payment services
• payment institutions (PIs)
• electronic money institutions (EMIs)
• Gibraltar PSPs providing payment services in the UK

This guidance will also be of interest to consumers and micro-enterprises, including charities, consumer groups, retailers, credit unions and law enforcement agencies. 

Next steps

We have updated our Approach Document from 22 November 2024 which sets out our final guidance.

Background

The UK has seen a significant increase in APP fraud. This is where someone is deceived into authorising a payment either:

• to an account that they think belongs to a legitimate payee but is actually controlled by a fraudster, or
• for something they believed was legitimate but is actually fraudulent  

Reducing and preventing financial crime, including APP fraud and money laundering, is a priority for us and is a key outcome in our Business Plan 2024/25.