The law obliging banks to suspend money transfers for two days if information about payees is on the Bank of Russia’s database of actual and attempted fraudulent transactions will become effective on 25 July 2024. If a credit institution fails to do so, it will have to reimburse the client for the funds transferred within 30 calendar days.
Such money transfers shall be suspended even if a client insists or tries to repeat the transaction during the two-day cooling-off period. In such a situation, banks shall notify individuals according to the procedure established by the agreement that the transaction has been suspended and specify the reason and the period of the suspension. However, if the client ultimately decides to transfer the funds to the same suspicious account two days later, the bank shall immediately conduct such a transaction and will not be financially liable for it.
Furthermore, banks must suspend money transfers based on new signs of fraudulent transactions. In this case, a client shall be notified that the payee might be a fraudster. Nevertheless, if the individual confirms the money transfer, the bank shall conduct the transaction provided that the payee is not on the Bank of Russia’s database.
Besides, banks are now obliged to disconnect clients involved in withdrawing and cashing out stolen funds from remote banking. Their payment instruments will be blocked if the Bank of Russia has information about their involvement in a fraudulent scheme received in the course of information exchange with law enforcement agencies.
The new measures will better protect people against fraud. The Bank of Russia will monitor whether financial institutions comply with these new requirements.
For details about these modifications, refer to the Frequently Asked Questions section on the Bank of Russia website.
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