Regulatory Alerts2015-05-08 | JB-2015-3404Resolution No. JB-2015-3404 of the Banking Board
The Banking Board of Ecuador issued Resolution JB-2015-3404 to reject the appeal filed by Banco Nacional de Fomento and confirm the order requiring the bank to reimburse US$ 4,975.00 to client Alba Yadira Yaselga Aspiazu for unauthorized ATM withdrawals. The Board determined that the bank, as the depositary of funds, bears the operational risk and security responsibility for ATM transactions and cannot shift liability to the customer for vulnerabilities in the BANRED network. The decision reinforces that financial institutions must ensure adequate physical and digital security measures for automated channels and are liable for losses resulting from their failure to do so.
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