Issue 34
August 2025
Welcome to the MBA's News Digest!
Dear readers,
Mobile payments reach $160 billion in Australia in 2024, as 99.3 per cent of customer-bank interactions now occur via digital channels.
5 billion out of 8 billion of the world’s population have access to a smartphone; making the mobile number a vital part of the identity verification process, in KYC, and AML compliance.
10, Downing Street? Buckingham Palace? Digital bank Monzo is fined £21m over weak financial crime controls, after allowing customers to register for accounts with “implausible” home addresses.
Best wishes,
The MBA team
MAS Takes Regulatory Actions against 9 Financial Institutions for AML-Related Breaches
4 July 2025
‘MAS found shortcomings in the areas of: (a) Customer risk assessment. Five of the FIs (BJBS, BOIPL, Citi, CSSB, UOBKH) failed to implement adequate policies or processes for the rating of ML risks presented by some of their customers. This led to mis-rating of ML risks and affected their ability to apply appropriate controls to and address higher ML risks presented by several POIs. (b) Establishing and corroborating source of wealth (SOW) of customers who posed a higher risk of ML. All nine FIs did not detect or adequately follow up on significant discrepancies or red flags noted in information and documents that should have cast doubt on some customers’ purported SOW and which indicated increased risk of ML. In some cases, there was no corroboration of significant aspects of SOW….’
Mobile wallet payments soar amid digital banking boom
24 July 2025
‘Australians made a staggering $160 billion worth of payments with their mobile wallets last year, as they continue to embrace the ease and convenience of digital banking. The Australian Banking Association’s 2025 ‘Bank on It’ report released today reveals digital payments continue to surge with over four billion mobile wallet transactions made in the past year, over 11 times the number of ATM cash withdrawals.’
Stop cashing in for crooks: Australians urged not to rent or sell bank accounts for cash
23 July 2025
‘Australian money mules renting out their bank accounts to criminals for as little as $200 are in the crosshairs of the AFP and the Australian Banking Association. Police and banks have stepped up their efforts to curb this criminality, and Australians have been urged not to rent their bank accounts to third parties or share their banking details with anyone. The warning comes as criminal networks looking for ways to launder illicit money derived from illegal activity are increasingly turning to money mules for assistance.’
Banks strengthen support for customers facing financial difficulty
8 July 2025
‘The updated guideline reflects the industry’s ongoing commitment to support customers when they need it most. ABA CEO Anna Bligh said this guideline builds on the existing obligations as well as the Banking Code of Practice. “When people are doing it tough, the last thing they need is a complicated or stressful process to get help,” Ms Bligh said. “This guideline is about making it easier for customers to reach out and know they’ll be treated with care and compassion. “Banks are making it a priority to spot the warning signs early, have better conversations with customers, and offer practical, tailored support that works for each person’s situation. “We want every customer to know, if you’re struggling, your bank is ready to help, you don’t have to tough it out on your own.” ’
Australian banks launch new defence in battle against scammers
2 July 2025
‘Australian banks have today unveiled their latest scam fighting technology, with the launch of Confirmation of Payee – a new name-matching service designed to help protect customers from being tricked into sending money to criminals. Banks have invested $100 million in this new technology which is a key initiative of the sector’s Scam-Safe Accord – a set of world-leading safeguards by banks to help keep the money of Australians safe.’
Mobile ID verification: a key driver of KYC / AML compliance and global growth
25 July 2025
‘With a global population of just over eight billion people, and around five billion having access to a smartphone, a mobile number is fast becoming a vital part of the identity verification process, in Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, and in the fight against fraud…. While matching a name to an address has traditionally been and remains an integral part of the ID verification process when onboarding new customers, it’s clear that mobile ID verification – matching a name to a mobile number – is something that needs to be embraced. Particularly as the proliferation of smartphones continues with an estimated 6.1 billion people expected to have access to such a device by 2029, while four billion people worldwide have a recognised postal address.’
Financial inclusion: the hidden impact of digitised payments – and what can be done
16 July 2025
‘At UK Finance, we support innovation for fast, secure and convenient card payments. However, recent developments have removed the tactile features that made bank cards and card machines accessible to visually or sensory impaired customers so that most bank cards are now entirely flat, without embossed (raised) numbers. Similarly, Android-based touchscreens on card machines (without a tactile PIN pad) have reduced acquisition costs and are popular with many merchants. Yet those with visual impairment or dexterity issues find it hard or impossible to input their PIN when required, often causing distress to the customer, but also leading to lost sales for the merchant. Many of these machines do have accessibility modes, but how many shop staff or visually impaired people know about them or know how to operate them?’
RT2: from upgrade to innovation launchpad
9 July 2025
‘Why RT2 is a game‑changer
- Resilience and speed: RT2 is designed to be robust against outages and cyber threats, using geographically diverse data centres and fortified security measures.
- Modern usability: The platform features BERTI (Bank of England Real Time Interface), enabling real‑time account data and over 43,000 API calls since launch.
- Open access: RT2 now offers broader access to non‑banks and new market players, supporting increased competition and innovation.
Interoperability: Built on ISO 20022 messaging and industry standards, RT2 dovetails with global payment systems.’
FCA and MAS stablecoin frameworks: a comparative view
4 July 2025
‘MAS’s framework offers a helpful reference point for the FCA as it calibrates its own. While not directly transferable, specific features such as the approach to redemption timelines, reserve asset strictness, and custodian requirements could provide useful inputs for UK implementation. At a broader level, these cross-jurisdictional insights also support long-term ambitions for global regulatory harmonisation and interoperability, particularly as stablecoins evolve into cross-border instruments.’
Monzo fined £21m after customers used No 10 and Buckingham Palace as addresses
8 July 2025
‘The digital bank Monzo has been fined £21m over weak financial crime controls, after it allowed customers to register for accounts with “implausible” home addresses including 10 Downing Street, Buckingham Palace and Monzo’s own headquarters. The Financial Conduct Authority’s (FCA) penalty follows a lengthy investigation, which discovered that Monzo’s internal controls failed to keep up with a rise in customers, which ballooned from 600,000 in 2018 to more than 5.8 million in 2022.’
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