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Catch up on six of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

Four UK Banks Breached Competition Rules, Says Regulator

HSBC, Lloyds, TSB and Allied Irish Bank (AIB) have violated Competition and Markets Authority (CMA) regulations designed to enhance transparency in retail banking, the regulator has .

According to the CMA, the banks failed to provide accurate information about their products, including branch locations, interest rates and overdraft charges.

HSBC was cited for listing closed branches as open and providing incorrect loan rates and overdraft charges, while Lloyds, TSB and AIB were cited for issues including outdated ATM addresses and inaccurate loan rates.

The CMA has said that Lloyds, TSB and AIB are taking steps to rectify their breaches, and HSBC has been ordered to implement additional measures.

Dan Turnbull, senior director at the CMA, said consumers need trustworthy banks and accurate information to make sound financial decisions.

"It’s disappointing that seven years on, we have to put in place formal enforcement measures to secure better compliance from a major bank like HSBC which, yet again, is in breach of the rules," he said.

"The CMA will continue to closely monitor all banks’ compliance to ensure customers can clearly and confidently manage their finances."

CFPB Warns Against Intimidation Of Whistleblowers

The US Consumer Financial Protection Bureau (CFPB) has a circular to regulators and law enforcement explaining how companies may be breaking the law by requiring employees to sign broad non-disclosure agreements (NDAs).

According to the CFPB, “sweeping” NDAs that do not clearly permit communication with law enforcement may intimidate employees from disclosing misconduct or cooperating with investigations.

The agency is concerned that these NDAs can impede investigations and potentially violate federal whistleblower protections.

"The law enforcement community uncovers serious wrongdoing by financial firms through whistleblower tips,” said CFPB director Rohit Chopra.

"Companies should not censor or muzzle employees through nondisclosure agreements that deter whistleblowers from coming forward to law enforcement."

FCA Imposes New Rules On Bank Branch Closures In Cash-Poor Areas

The UK’s Financial Conduct Authority (FCA) has that new restrictions on bank branch closures in certain areas will come into effect on September 18, 2024.

Under the new rules, banks and building societies will need to assess whether local communities have sufficient access to cash services before proceeding with branch closures.

Where additional services are needed, branch closures will need to be put on hold until these services are in place.

Sheldon Mills, executive director of consumers and competition at the FCA, said 3m people continue to rely on cash, and many small businesses still need somewhere to safely deposit their takings.

“That’s why we’ve acted quickly in response to new powers given to us by parliament to ensure reasonable access to cash withdrawal and deposits is maintained,” he said.

All Payment Systems Functioned Normally During Microsoft Outage, Says Singapore

The Monetary Authority of Singapore (MAS) has that all of its payment systems managed to stay online during last week’s global cyber outage.

This includes the MAS Electronic Payment System (MEPS+), the real-time gross settlement system for Singapore dollar (SDG) payments.

In addition, the SDG money market and foreign exchange market functioned normally during the outage.

In response to a request for information from the MAS, Singapore financial institutions reported “no or limited impact” on customers and key operations during the outage.

“Some experienced disruptions to internal-facing systems used by staff, but in all cases, critical systems were unaffected,” said the MAS.

ANZ Settles First Cross-Border Transaction Using Real-Time Payments Platform

ANZ has become the first Australian bank to settle a cross-border transaction using the country’s real-time payments system.

Earlier this month, the bank that it had successfully settled a cross-border transaction for BNP Paribas using Express Payments, a solution that leverages Australia’s New Payments Platform (NPP).

To execute the transaction, BNP Paribas sent an international payment to ANZ via Swift. ANZ was able to process the payment and clear it into the NPP network, allowing the beneficiary to receive it in near real time.

Lisa Vasic, managing director for transaction banking at ANZ, said the new solution is a “game changer” for both individuals and businesses.

“It will significantly improve the customer experience by reducing wait times, improving cash flow and increasing operational efficiency,” she said.

“We’re particularly pleased that the infrastructure was built using in-house capability without relying on third-party solutions.”

Bank Of Lithuania Issues Warning To EMI Over Sanctions Compliance

The Bank of Lithuania has a warning to IBS Lithuania after determining that the e-money institution (EMI) has failed to comply with international sanctions and client identification requirements.

During the audited period, the central bank found that IBS Lithuania's internal policies and control procedures lacked sufficient quality assurance and testing measures for the implementation of international sanctions and restrictive measures.

This resulted in inadequate application of these measures in practice. In addition, deficiencies were found in the institution's IT system, customer information verification processes and the identification of customer representatives.

Despite these issues, the Bank of Lithuania has acknowledged that all identified deficiencies have since been addressed, with some rectified prior to the inspection.

Considering these remedial actions and other circumstances, the bank decided to issue a warning to the company, rather than a more punitive measure.

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