CBA considers introducing insurance mechanism to combat financial fraud

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.