⚠️Russia🇷🇺: Banks request a one-year postponement for the implementation of mandatory transaction confirmation by a customer’s proxy

⚠️Russia🇷🇺: Banks request a one-year postponement for the implementation of mandatory transaction confirmation by a customer’s proxy

The requirement was introduced to combat fraudulent transactions targeting individuals with reduced mobility. However, banks have been unable to implement the protocol—known as the “second hand service”—within the established timeframe.

➡️The requirement is set out in Law 41-FZ, which stipulates that, starting September 1, 2025, credit institutions must offer clients the option to designate a proxy. This proxy will have 12 hours to either confirm or reject a transaction after being notified. If the proxy fails to respond within this window, the bank will automatically decline the transaction.

➡️The client must select the banking services in which the third party will participate, which causes some confusion, especially in cases where the client has limited capacity to understand the procedures.

➡️From a cybersecurity perspective, the law poses several vulnerabilities. To address this, banks have proposed the following measures:

🔴Including transfers to the client’s own accounts at other banks among the transactions requiring proxy confirmation.

🔴Enabling the service by default for all of the client’s accounts.

🔴Granting banks the authority to define the list of operations subject to proxy control.

🔴Allowing credit institutions to implement comprehensive protection packages for high-risk transactions.

➡️In summary, the law requires adjustments, and banks are requesting additional time for implementation, as the measure will impact several banking systems and all service channels: online banking, cards, ATMs, teller windows, and self-service terminals.

A response from the State Duma to these requests is pending.

#news #Russia #fraud

🏦 Payouter.com — reliable payment partner in the CIS and 🇮🇳 India: Intent, UPI P2C conversion 54% by FTD