Regulatory Alerts2015-06-04 | JB-2015-3455Banking Board Resolution JB-2015-3455
The Banking Board of Ecuador issued Resolution JB-2015-3455 to reject Banco Nacional de Fomento's review appeal and confirm a regional order requiring the bank to reimburse client Francisco Urbano Chimbo de Lucca US$4,862.35 for unauthorized ATM withdrawals. The resolution determines that the bank failed to implement required electronic security monitoring procedures and breached its custodial duty by allowing approximately fifty atypical transactions without issuing alerts to the account holder. Consequently, the bank is held fully liable for the disputed funds and must provide documented proof of reimbursement within eight days, while retaining the right to pursue recourse against third-party ATM operators.
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