Regulatory Alerts2015-05-27 | JB-2015-3443Resolution No. JB-2015-3443 of the Banking Board of Ecuador
The Banking Board of Ecuador issued Resolution No. JB-2015-3443 to reject the administrative review appeal filed by Banco Nacional de Fomento regarding a customer's claim for unauthorized ATM withdrawals. The Board confirmed the lower authority's decision requiring the bank to reimburse the customer, Simón Ernesto Vivas Bazurto, USD 4,544.50, ruling that the bank failed to implement adequate security monitoring and alerts for suspicious transaction patterns. The decision establishes that financial institutions remain liable for fraud occurring on third-party ATMs if they fail to enforce due diligence and security protocols.
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