The article BoE takes supervisory actions over Visa Europe’s June 2018 service disruption appeared initially on FinanceFeeds.
Now brought some development to the story, as the Bank of England has decided to intervene and take supervisory action in regard to the event.
BoE explains that, after the incident, Visa Europe engaged an external celebration to conduct an independent inspection, with the extent agreed with both the Bank and the Payment Systems Regulator (PSR). A review of the inspection’s findings had been shared by, and subsequently published by, the Treasury Select Committee in November 2018.
Owners of Visa cards likely remember the agency disturbance in June 1, 2018, that left many wondering if they’re characters in certain anti-utopian movie…
The Bank has reviewed the incident and whether to use its statutory powers under the Banking Act 2009. The incident led to widespread disruption to customers of Visa Europe’s providers and had the capacity to influence confidence in the financial system.
The first reports about the issues arose during the day of June 1, 2018, in Europe, since Visa card transactions failed to work for anyone attempting to cover online or via POS. Those attempting to pay via charge cards had problems, whereas ATMs promptly ran out of cash and queues formed in banks. Irate passengers could not catch their airplanes and taxis, nor the subway train for home. The rush hour turned into a nightmare for most, especially in the united kingdom, France, Germany and Italy, in which the vast majority of the reports seem to have come from. Around 10pm BST, Visa eventually released a long-awaited update saying that the issue was a consequence of a hardware failure rather than a cyber attack. Disruptions continued over the next couple of days, with lots of Visa card owners needing to handle smaller trades or the fact they have been billed twice for one purchase.
The action taken by the Bank does not imply the violation of a regulatory requirement and does not constitute enforcement actions.
The Bank recognises that Visa Europe has approved all the recommendations of the independent inspection, in full, and is dedicated to implementing them in a timely manner.
Given that, and the value of ensuring implementation of the remediation actions, the Bank has decided to use its own powers to direct Visa Europe to completely implement the recommendations of the individual inspection. Moreover, BoE is also using its own powers to require Visa Europe to create an independent third party, PricewaterhouseCoopers (PwC), to assess Visa Europe’s progress in implementing these recommendations. The Bank sees its action as proportionate to the character and effect of the incident.