SBP issues directions to banks to compensate fraud victims
The State Bank of Pakistan (SBP) has issued directions to commercial and microfinance banks of the country to compensate their customers within three working days of the reporting of the fraud.
The rapid growth in Digital Banking Products and Services also
invites the risk of fraud by sophisticated financial criminals.
The Central Bank has prepared a set of control measures to
enhance the security of digital banking products and services.
It has advised Banks/ MFBs to develop a comprehensive plan with
monthly milestones, to be implemented by December 31, 2023, duly approved by the
Chief Executive Officer (CEO) and submit the same to their relevant Banking
Supervision Department (BSD) in SBP, within thirty (30) days from the issuance
date of the issued circular.
Compensating the victims
According to State Bank of Pakistan guidelines, the banks shall
be liable to compensate the customers, in cases where they are unable to
establish that the transactions were executed through the customers’ registered
devices.
Banks shall be responsible for the loss of any customer funds
due to delay on their part in taking timely remedial and control measures such
as delay in blocking digital channels, delay in raising dispute requests, etc.
In this regard, the FIs shall compensate in whole the customers for such
losses.