58BMTaking reasonable steps to detect scams—civil penalty provision

58BM Taking reasonable steps to detect scams—civil penalty provision

(1) A regulated entity contravenes this subsection if the entity fails to take reasonable steps to detect a scam relating to, connected with, or using a regulated service of the entity.

(2) Subsection (1) is a civil penalty provision.

Note: This means subsection (1) is a civil penalty provision of an SPF principle for the purposes of section 58FJ (about civil penalties).

(3) Without limiting subsection (1), the regulated entity fails to take reasonable steps to detect a scam relating to, connected with, or using a regulated service of the entity if the entity fails to take reasonable steps to:

(a) detect such a scam as it happens; or

(b) detect such a scam after it happens.

Note: For further details about the meaning of reasonable steps, see sections 58BB and 58BP.