Bank of England uses statutory powers, directs VISA-Europe to make changes

BFSI News

Bank-of-England-uses-statutory-powers-directs-VISA-Europe-to-make-changes Bank of England uses statutory powers, directs VISA-Europe to make changesThe Bank of England (BoE), UK’s central bank, as per recent reports, will be taking supervisory action over June 2018 pan-European outage of VISA, affecting over 5 million card transactions, half of which were in the UK alone. The central bank will be taking statutory action on VISA Europe, which disrupted BoE’s card authorizations system.

The BoE, using its statutory powers, will direct VISA Europe to implement its own commissioned recommended review. Earlier, VISA commissioned a review to an independent party following the incident, with the scope which was agreed upon by both the central bank and the UK’s Payment Systems Regulator (PSR). Furthermore, BoE will also use its statutory powers to make VISA Europe appoint an independent third party, PricewaterhouseCoopers (PwC), to assess the implementation progress of above-said recommendations.

BoE claims that VISA’s pan-European outage in Jun. 2018 resulted in widespread disruption to European VISA users. The outage incident had the potential to affect confidence in the whole global financial ecosystem. The bank claims its actions are appropriate, judging by the nature and impact of the outage. Furthermore, the central bank’s action in no way implies the breach of a regulatory requirement and does not constitute enforcement action.

PwC is asked to provide a final report to the BoE later this year assessing the implementation progress of each recommendation.