Bank of Russia Obliges Banks to Explain Reasons for Blocking Cards to Clients

Bank clients should receive a clear explanation of the reasons for blocking accounts and cards

The Bank of Russia has obliged banks to disclose to clients the reasons for blocking cards and restricting access to remote services. This is stated in the regulator's information letter.

Banks should not only indicate the grounds for suspending operations, but also explain the procedure for restoring service. According to the Bank of Russia, many clients face the fact that they do not understand the reasons for the blocking and do not receive clear instructions. An analysis of appeals showed that credit organizations often do not provide complete information about the nature of the restrictions and the legal grounds for their application.

The regulator recalled that banks are obliged to refer to specific norms of federal legislation — Law No. 161-FZ "On the National Payment System" or Law No. 115-FZ on countering the laundering of proceeds from crime and the financing of terrorism. Simultaneous application of restrictions under both laws without sufficient grounds is considered unacceptable.

The Bank of Russia stated that it will continue to monitor how credit organizations comply with these requirements.

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Sources
CB RF

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