Regulatory Alerts2024-06-13
Regulation on the Application of Strong Customer Authentication
The Central Bank of the Republic of Azerbaijan mandates strong customer authentication for payment transactions, requiring users and providers to utilize at least two independent authentication elements while enforcing specific technical safeguards like session limits and password masking. The regulation establishes detailed exemptions for balance inquiries, trusted beneficiaries, contactless payments under AZN 100, and low-risk transactions, contingent upon providers maintaining real-time fraud monitoring mechanisms. Payment service providers must adapt their existing transaction monitoring systems to these requirements by January 2025 and calculate quarterly fraud rates to determine when exceptions can be safely applied.
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