New EU rules boosting customer security are set to be enforced by mid-September. However, the UK may take another 18 months to implement the changes.
Britain’s Financial Conduct Authority (FCA) is set to delay enforcement of the EU’s new strong customer authentication (SCA) rules after being warned by critics that companies haven’t had enough time to prepare, according to a report in the Financial Times.
The rules are part of the trading block’s new Payment Services Directive (PSD2). The new legislation is an update to older rules. It aims to make online and mobile payments more secure.
While many of these rules have already been implemented, the final key segment would be introduced on September 14. This includes the directive’s rules about SCA, where people have to take more steps to verify who they are to prevent things like fraud.
These are the rules that trade group UK Finance are now arguing that British enterprises have not had enough time to prepare for. It completed a report last week that outlined that businesses should at least have until March 2021 to implement the rules plus an additional six months to secure additional advanced forms of authentication.
According to the Financial Times report, the FCA is expected to endorse the recommendations made by UK Finance.
Copyright © 2019 FinTech Global