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The UK’s payments watchdog has imposed a £3.78m penalty on Bank of Ireland UK after the lender failed to meet the regulatory deadline for implementing Confirmation of Payee (CoP), a key anti-fraud safeguard in domestic bank transfers.
PSR fines Bank of Ireland £3.7m
The Payment Systems Regulator (PSR) concluded that Bank of Ireland UK implemented the functionality to send CoP requests 14 months after the mandated deadline of 31 October 2023.
During that period, the protection was not applied to transactions involving more than 1.14 million newly created payees, representing payments worth approximately £6.9bn.
Why Confirmation of Payee Matters
Confirmation of Payee has become a cornerstone of the UK’s strategy to tackle authorised push payment (APP) fraud and misdirected transfers.
The system enables customers to verify that the name of the intended recipient matches the account details entered before a payment is executed.
By flagging discrepancies in real time, CoP reduces the likelihood of funds being sent to fraudsters or to unintended accounts.
The PSR first confirmed the mandatory rollout for major payment service providers in October 2022, providing a year for firms to implement the necessary systems.
Bank of Ireland UK was the final Group 1 institution to achieve compliance.
David Geale, Managing Director at the PSR, described CoP as “a vital tool to combat fraud and misdirected payments”, emphasising that delays left customers exposed to avoidable risk.
He warned that where firms fail to comply with regulatory directions, the regulator will not hesitate to intervene.
Regulatory Pressure Intensifies
The fine underscores the increasingly muscular stance adopted by UK authorities in relation to payment fraud controls.
Over recent years, regulators have tightened expectations around operational resilience, consumer protection and reimbursement obligations for APP fraud victims.
CoP is viewed not as an optional enhancement but as a baseline safeguard in a digital payments environment characterised by rising scam volumes.
For the industry, the case serves as a reminder that implementation timelines are not merely aspirational.
As instant payments and Open Banking services expand, regulators are likely to scrutinise not only technical compliance but also the timeliness of deployment.
In a landscape where consumer trust underpins digital commerce, the cost of delay can prove material — both financially and reputationally.
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