ArmInfo. Due to the increasing incidence of financial fraud in Armenia, the Central Bank is considering introducing an insurance mechanism for loans that exceed a certain threshold. As Deputy Chairman of the Central Bank of Armenia Armen Nurbekyan reported during a meeting of the Parliamentary Standing Committee on Financial, Credit and Budgetary Issues, this issue is being discussed at a meeting of the Central Bank Council.
The practice, known as a zero liability policy, guarantees the return of funds illegally taken from a cardholder due to fraud. This approach, according to Nurbekyan, will allow for quicker institutional resolution of such issues.
<But this is a long-term solution that requires a more in-depth analysis. I do not want to rush, because first of all we need to understand how to manage all this correctly>, - said the Deputy Head of the Central Bank. Having pointed out the advisability of introducing stricter identification requirements, Nurbekyan noted that with the development of digitalization, in any case, cases of fraud will also increase, which is already a global trend. Nurbekyan said that in view of the current situation, the Regulator has conducted detailed studies in banks to find out whether there were cases of non-compliance with legislative requirements in terms of security, which could have caused such cases. Referring to the preliminary results, he noted that there were no cases of non-compliance, and for the most part, people themselves provided personal data. Nevertheless, 2 banks will freeze the credit obligations of citizens who have become victims of fraud for 3 years, and 1 bank - for 5 years.
