NBU wants to introduce new rules for controlling payment transactions: what will change for banks

The National Bank of Ukraine has submitted for public discussion a draft of new rules for monitoring payment transactions. The document is to introduce uniform standards for monitoring payments for banks and other payment service providers.

This was reported by the NBU press service.

What the draft provides

The new procedure will determine how banks and other financial institutions should monitor payment transactions, assess operational risks and respond to atypical customer activity.

In particular, the draft resolution provides for:

uniform principles for monitoring payment transactions;
requirements for organizing a payment monitoring system;
conducting control measures during payment transactions;
the possibility of involving third parties in individual control processes;
the right to independently develop internal rules for monitoring payments;
assessment by the National Bank of the effectiveness of control systems;
measures to prevent miscoding;
identification of signs of atypical user behavior.
Special attention will be paid to miscoding

One of the innovations of the document is the strengthening of control over cases of miscoding – situations when an incorrect or inappropriate merchant category code (MCC code) is used during a payment. Such violations can affect the correct processing of transactions, the application of tariffs and risk analysis.

The NBU notes that the new rules are designed to increase the effectiveness of control over payment transactions, unify approaches for all payment service providers and strengthen operational risk management in the financial sector.