Regulatory Alerts2015-06-04 | JB-2015-3466Resolution No. JB-2015-3466 of the Banking Board of Ecuador
The Banking Board of Ecuador rejected the appeal filed by Banco Nacional de Fomento regarding an administrative order requiring the bank to refund USD 1,114.50 to a customer for unauthorized cash withdrawals. The Board confirmed that the bank failed to maintain adequate security measures at an ATM identified as compromised, thereby bearing the risk of operational failure rather than the customer. Consequently, the ruling upholds the obligation for the bank to reimburse the client and allows the bank to seek recourse against the ATM operators responsible for the security breach.
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