Financial fraud is becoming increasingly complex, and the protection of banking transactions is becoming especially important. To this end, the National Bank of Kyrgyzstan plans to introduce new measures that will enhance the security and protection of clients. The central bank will also consider the issue of limiting or canceling fees in the bank applications. The National Bank notified of the development of the regulatory legal act.
Banks will have to implement effective anti-fraud systems that will meet the strict standards of the National Bank of Kyrgyzstan. These systems will help detect suspicious transactions and prevent fraud, which will reduce financial risks, and also quickly block accounts if fraud is suspected that will protect clients.
In addition, banks and other supervised organizations will be required to follow new rules to limit or cancel fees for certain services provided through mobile applications.
Since April 2024, the National Bank has received about 30 written complaints from citizens who suffered from fraud. The bank also received 25 phone calls and 20 WhatsApp messages on the same issues. The introduction of anti-fraud systems will help solve several problems:
- Combating the growth of fraud: Modern technologies give fraudsters new opportunities, and anti-fraud systems will help banks quickly detect such schemes and respond to them.
- Client protection: Banks are obliged to protect their clients’ money, and these systems will reduce the risk of losses and make it possible to quickly block accounts.
- Strengthening trust: When clients feel the security of their funds, they trust banks more and use their services more actively.
- Quick response: The ability to instantly block accounts will help banks prevent fraud and return money to victims.
The National Bank notes that this regulation is aimed at preventing fraud in the financial sector and strengthening trust in the banking system. It does not entail negative consequences and will help make financial services safer and more accessible. As part of the regulation, the National Bank will be able to establish a list of services that are provided through mobile applications with possible restrictions or a ban on charging fees.
It concerns commercial banks and other organizations that are subordinate to the National Bank of the Kyrgyz Republic.
Banks and other financial institutions will be able to quickly detect fraud and block suspicious transactions, which will help reduce risks for clients. Also, the implementation of measures on providing some services free of charge through mobile applications will lead to minor expenses for participants of payment systems, but will ultimately improve their quality and accessibility.
It is noted that the regulation will not require additional costs from the republican budget, but may lead to an increase in tax revenues, as the population will begin to trust banks more and use their services.
Earlier, the National Bank proposed to prohibit banks from charging fees for transfers.
