The Isle of Man Financial Services Authority, alongside the Jersey Financial Services Commission and Guernsey Financial Services Commission, has set out agreed principles for developing a coordinated Authorised Push Payment fraud framework across the Crown Dependencies. The proposed approach is intended to create broadly consistent customer outcomes while recognising differences in each jurisdiction’s legal and regulatory environment. Its initial scope is retail banking customers and sterling payments made through Faster Payments and CHAPS. The framework’s direction of travel centres on prevention, detection, customer education, systems and controls, support for vulnerable customers and clearer expectations for firms when suspected fraud is reported. Reimbursement will be part of the framework, but key design points remain open, including the scope of eligible claims, any cap, how customer responsibility and vulnerability should be treated, and when reimbursement could be reduced or refused. The regulators said a cross-Crown Dependency inter-bank cost-sharing model between sending and receiving banks should not be the starting point because of operational complexity. The detailed definition of APP fraud, and the precise firm and customer perimeter, will also need further testing. Next steps are to use these high-level principles for collective engagement with trade bodies, government and Ombudsman counterparts, as well as professional bodies and representatives from the Isle of Man banking sector. An industry outreach session is scheduled for September 2026. That engagement is intended to test workability, identify operational issues and refine the framework before more detailed proposals are shared.

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