Regulatory Alerts2015-06-04 | JB-2015-3453Banking Board Resolution JB-2015-3453
The Banking Board of Ecuador issued Resolution JB-2015-3453 to reject the appeal filed by the General Manager of the National Development Bank regarding unauthorized ATM withdrawals from a customer's account. The Board confirmed the Superintendence's prior order requiring the bank to refund US$ 2,160.90, ruling that the bank is exclusively liable for losses resulting from card cloning and cannot shift operational risks to customers. This decision reinforces consumer protection principles by affirming that financial institutions must ensure the security of their automated services and bear the responsibility for fraudulent transactions caused by inadequate safeguards.
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