Lawyers explain how trustee law will work in banking transactions

The document modifies the law “On banks and banking activities.” In the explanatory note of the project, the authors explain the need for changes due to the increasing number of operations without the client’s consent.

“In 2022, attackers stole about 14 billion rubles, 4% more than the 2021 level,” the parliamentarians explain, citing data from the Central Bank.

If the initiative passes the second and third reading, systemically important banks (today there are 13) will have to request the consent of a third party (trusted) to carry out certain transactions, such as remote transfers from an account or loans.

The authorized representative, in turn, will confirm or reject the operation within 12 hours. Exceptions will be made for transfers using the Faster Payment System, payment cards and electronic funds.

RB.RU learned from lawyers how the new measure will work and what points should be included in the bill.

Lawyer Igor Apostol considers that the bill is convenient; In his opinion, the measure will reduce the number of cases where citizens, under the influence of scammers, transfer large sums to unknown persons.

Anastasia Chumak, co-head of Intercession’s investor rights practice, notes that the law can even help in the fight against money laundering by additionally monitoring transactions with clients’ close family members.

How the new requirement is technically implemented

The procedure will probably work by analogy with the institution of guarantees for credit obligations, suggests Igor Apostol. First of all, credit institutions will ask third parties for their consent to process personal data and their consent to be verifiers of other people’s transactions.

The simplest way to carry out the procedure is through a third party’s visit to the bank, but an electronic signature can also be used. But if the verification is carried out using an electronic signature or through the State Services portal, fraudsters will still be able to deceive people and deceive people with disposable keys to sign transactions.

Potential costs for banks and customers

Firstly, bureaucracy will inevitably increase, which will complicate work with private clients, notes Anastasia Chumak. Secondly, there is a greater risk of violating the confidentiality and security of personal data, which banks will have to request from trusted people. And finally, costs for banks for additional controls, data processing and approvals will increase.

Igor Apostol predicts a decrease in the number of products sold by banks due to additional difficulties in selling them. But in the long term, this will be offset by a reduction in the number of bankruptcy and debt restructuring procedures, as citizens will be less likely to suffer from the actions of fraudsters.

One of the authors of the bill, MP Natalya Kostenko, told Izvestia that in the second reading the bill could include a mechanism for revoking a power of attorney to eliminate the risk of abuse for the recipient.

What else should be included in the law?

According to Igor Apostol, it is important to reflect in the document the responsibility of a third party for the approval of the loan, which may lead to a violation of the recipient’s rights. Liability should also be prescribed in case of systematic and malicious evasion of approval.

Anastasia Chumak highlights the importance of clear criteria and rules in the law for agreements with trustees, in order to avoid arbitrariness and misunderstandings on the part of banks.

It is also necessary to develop mechanisms for the protection of personal data and oblige banks to train employees in the correct use of the procedure.

“Given the diversity of clients and the possible vulnerabilities when carrying out financial transactions, it is important to develop transparent and effective mechanisms to verify and monitor transactions with close family members,” concludes the expert.