Regulatory Alerts2023-06-23
Recommendation No 5/2023 on the prevention, detection and management of abuses observed through payment services
The Magyar Nemzeti Bank issued Recommendation No 5/2023 to establish expectations for payment service providers regarding the prevention, detection, and management of fraud in digital payment services. The document mandates robust transaction monitoring, strict customer authentication protocols for new instruments, and clear contractual definitions of gross negligence to enhance consumer protection. It further requires providers to implement comprehensive IT security measures, internal safeguards against employee fraud, and effective mechanisms for reporting and recovering fraudulent transactions.
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