Westpac is implementing additional transaction monitoring measures to identify potential misuse of power of attorney arrangements involving customers’ accounts.
According to Tiffiny Lewin, the bank’s head of customer excellence, there are currently up to 15,000 customers with power of attorney arrangements in place. While most operate in the best interests of the individual, there are instances of abuse.
The new transaction monitoring system aims to detect early warning signs of power of attorney misuse by flagging unusual transactions. Although Westpac didn’t specify the prevalence of such abuse, Lewin emphasized that any occurrence is unacceptable.
To address this issue, Westpac has assembled three specialist teams to investigate alerts triggered by its monitoring systems. Additionally, the bank has updated its terms and conditions to include a zero-tolerance policy for customers engaging in financial abuse or unacceptable account conduct.
Lewin stressed that there will be serious consequences for those misusing the bank’s products and services, including potential warnings or termination of their banking relationship. This policy extends to cases where a power of attorney is found to be abusing their position.
These actions are part of broader industry efforts to combat financial abuse against customers, which began in 2021 with initiatives to prevent low-value payments containing abuse or threats in transaction descriptions.
