Regulatory Alerts2015-03-25 | JB-2015-3313Resolution No. JB-2015-3313 of the Banking Board of Ecuador
The Banking Board of Ecuador rejected the appeal filed by Banco de Guayaquil S.A. and confirmed the administrative order requiring the bank to refund US$1,500 to client Evelin Paola Pérez Castillo for an unauthorized internet transfer. The Board determined that the bank failed to implement adequate security monitoring procedures, specifically by failing to detect and alert on a transaction from an unusual IP address in Peru, thereby violating operational risk management regulations. Consequently, the bank was held liable for the fraud, as it did not provide sufficient evidence that the client misused her security credentials.
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