New Bill Seeks Immediate Refunds for Fraud Victims
May 27, 2026 at 15:06
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✦ AI Summary
- Banks must quickly refund stolen funds reported by clients
- Clients won't be liable for unauthorized transactions
- Financial institutions need to prove client negligence for liability
A new legislative proposal aims to protect bank clients from fraud. The bill, registered in the Ukrainian Parliament, mandates that banks must refund customers immediately if they report fraud promptly. This initiative is outlined in the proposed amendments to Article 55 of the Law of Ukraine on Banking and Banking Activities, which emphasizes the rights of clients facing banking fraud.
Main proposed changes include:
- The bank must promptly reimburse funds for unauthorized or incorrectly processed transactions reported quickly by clients.
- When necessary, banks are required to restore account balances to their original state.
- Clients will not bear liability for payments made if their card was used without their participation or electronic identification.
- Client liability may arise only if it is proven they contributed to the loss or misuse of their PIN or payment data.
- Banks must demonstrate client fault in cases of data breach rather than shifting the burden to customers.
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