Banks Given Permission to Suspend Suspect Money Transfers for 4 Days

Banking groups have been given permission by the Government (via the Bank of England) to suspend and posted banking money transfers for up to 4 Days if they suspect the transfer to the recipient is fraudulent.

This commences at the end of October 2024, just weeks after the new £85,000 compensation that Banks must pay to account holders within 7 days if they have been the victim of a bank transfer fraud (even if the account holder authorised the transfer themselves) whicg starts on Monday 7^th October 2024.

See: Fraud Compensation £85,000

This has been met with opposition from many parties including those that make regular international money transfers for business for overseas services, imports and exports as well as conveyancers where large amounts of money are transfer regularly for property sales suggesting this may result in sales falling throught due to delay or indeed mortgage offer expiry.

Comment

If banks and monet transfer serviecs are being forced to compensate up to £85,000 within 7 days for banking fraud, even through no fault of their own, then it is only right that they should be allowed to establish systems to suspend suspect transfers and investigate/verify these as legitimate before the transfer payment is released.