Regulatory Alerts2015-04-22 | JB-2015-3382Banking Board Resolution JB-2015-3382
The Banking Board of Ecuador issued Resolution JB-2015-3382 to confirm its prior decision revoking a previous administrative order and ordering Banco Pichincha C.A. to refund USD 27,849 to client Lilia Piedad Llumiquinga Aguilar. The Board determined that the bank failed to observe security procedures by paying forged checks and authorizing an unsolicited overdraft, despite the client's lack of prior notification regarding the loss of the checkbooks. Consequently, the Board denied the bank's appeal against the refund order, citing the bank's liability for the fraudulent withdrawal of funds due to its negligence in validating the claimant's identity.
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