Russian banks get the right to freeze suspicious transfers

According to new amendments to the law on the payment system, which came into force on July 25, 2024, Russian banks are required to more closely monitor where and how customers transfer money. If the bank allows a transaction to an account that is in the Bank of Russia's database of cases and attempts of fraudulent transactions, it will bepunished with money.

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In such a case, the bank will have to compensate the client for the entire transferred amount within 30 days. To protect clients and themselves, banks are required to observe a two-day cooling-off period for such transactions in suspicious cases.

As noted by the Central Bank, during these two days, the transfer will be suspended even if the client insists on it or tries to carry it out again. At the same time, the bank is obliged to inform the person that the operation has not been completed, indicate the reason and the term of its suspension.

If, after two days, the client decides to proceed with the transfer to an account that has "appeared" in suspicious transactions, the bank will be obliged to make it. However, the bank will not bear financial responsibility for this transfer in the form of compensation to the client.

Also, according to the new law, banks can, to protect customers from criminals:

suspend transfers based on new signs of fraudulent transactions, even if the account to which the money is going is not in the special database of the Bank of Russia. The bank warns the client that the payment may be received by a fraudster. But if the client confirms the transfer, the financial institution is obliged to carry it out;
disable access to remote services for clients who are engaged in withdrawing and cashing out stolen money, based on data from law enforcement agencies about the recipient's participation in a criminal scheme.

The Central Bank hopes that"the new measures will increase the protection of people from the actions of malicious actors".