Australian Legislation Introduces Scams Prevention Framework to Combat Financial Crime
Australia has enacted the Scams Prevention Framework (SPF) through legislation passed in 2025, marking a significant shift in its approach to financial crime. This framework adopts a comprehensive 'whole-of-ecosystem' strategy, involving banks, telecommunications providers, and digital platforms, rather than placing the sole responsibility on consumers. Under the SPF, regulated entities are mandated to take reasonable steps to prevent, detect, disrupt, respond to, and report scams. Banks were required to join the Australian Financial Complaints Authority (AFCA) by September 1, 2026, with most SPF obligations becoming effective on March 31, 2027. This means banks must now actively demonstrate their ability to prevent scams and effectively manage scam-related complaints, moving beyond controls designed solely for unauthorized activity.
