RUS PRL Payment System Fraud

On Mar. 14, RUS PRL proposed rules to protect citizens from fraud.

  • RUS PRL proposed bill 197920-8 amending the law 161-FZ on national payment service to provide addition additional protection of citizens from financial fraudsters.
  • Summary
  • It obliges money transfer operators to check suspicious transactions and suspend fraudulent transactions between individuals, even if there is the consent of the client.
  • Older people are especially vulnerable - it comes to the point that deceived citizens give their retirement savings to criminals: they sell property, take loans.
  • Jul. 2023 Law Approved
  • On Jul. 11, 2023, RUS CB and RUS PRL announced law was adopted by State Duma.
  • Law requires banks/payment systems to check suspicious transactions and suspend fraudulent transactions between accounts of individuals, even if customer consented.
  • If a bank allowed the transfer of funds to a fraudulent account, the customer must be reimbursed within 30 calendar days after bank receives an application from the victim.
  • The law also provides for a two-day cooling-off period during which the bank will not transfer money to a suspicious account but will notify the client of its suspicions.
  • Giving the customer time to reconsider and not confirm the request financial transfer.
  • Banks will be required to disable access to remote services for persons involved in the withdrawal and cashing of stolen money if information about the illegal actions committed has been received from the Russian Ministry of Internal Affairs.
  • Currently, banks receive such information from the database of the regulator.
  • Law enters into force one year after official publication, giving time for parties to the information exchange to improve their automated systems and business processes.
  • Jul. 24, 2023 Law Issued
  • On Jul. 24, 2023, RUS GVT approved the law 369-FZ amending the national payment system and the law will enter into force within one year from official publication.
  • In Mar. 2024, RUS CB proposed suspicious transactions regulation, see #205705.

Regulators RUS CB; RUS PRL
Entity Types Bank; CNSM; MSB
Reference PR 7/24/2023; Law 369-FZ, 7/24/2023; PR 7/11/2023; PR, 3/14/2023; Law 161-FZ, 7/27/2011; Bill 197920-8
Functions Financial; Fraud; Operations; Reporting; Treasury
Countries Russia
Products Banking; Payments
Regions EMEA
Rule Type Final
Rule Date 3/14/2023
Effective Date 7/24/2024
Rule Id 166294
Linked to N/A
Reg. Last Update 7/24/2023
Report Section International

Last substantive update on 07/27/2023