UK banks consider transaction levy to fund fraud compensation

By Sara Lewis

UK banks are mulling setting up a fund to compensate victims of banking fraud. The British banking trade association, UK Finance, has written to the retail banking authority Pay.UK proposing it sets up a ‘No Blame Fund Trust’, financed by a UK£0.029 per transaction levy or ‘contingent reimbursement model’ (CRM) on faster payment transactions over UK£30.