Author: Philip vanDyk

The New Zealand Banking Association Te Rangapū Pēke said banks would be likely to support government initiatives as long as they didn’t compromise banks’ anti-money laundering obligations.

NZBA chief executive Roger Beaumont believes that broadening the Code of Banking Practice to cover APP scams would mean “banks take on all or most of the risk of customer decisions, meaning customers have little incentive or responsibility to protect their money. This could lead to much greater fraud losses.”

NZBA chief executive Roger Beaumont believes that broadening the Code of Banking Practice to cover APP scams would mean “banks take on all or most of the risk of customer decisions, meaning customers have little incentive or responsibility to protect their money. This could lead to much greater fraud losses.”

But it is not a member of the Banking Association Te Rangapū Pekē, whose member banks promise to reimburse fraud losses for customers who were not dishonest or negligent, complied with their banks’ terms and conditions for electronic banking or card use, and took reasonable steps to protect their banking.

“The Commerce Commission will determine the scope of the market study. Banks are open and transparent and will participate fully in the areas the Commission wishes to look at.”

“To address this properly we need all parties involved including, for example, global tech companies, telcos, internet service providers, government agencies, dispute resolution services, and consumer representatives and advocates.” Matching accounts and names with the customer’s intended recipient had privacy implications that would need to be overcome, Beaumont said.

Banking Association Te Rangapū Pēke chief executive Roger Beaumont sought to cast the issues raised as being caused by anti-money laundering laws.

“Each bank also has its own risk management and lending policies and will assess each loan application within that framework. One bank’s risk appetite may be different from another so it’s worth shopping around.”

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