A new regulation by the National Bank of Georgia aimed at protecting customers over the age of 60 from financial fraud takes effect today, September 1. The rules introduce additional requirements for payment service providers to strengthen safeguards for vulnerable customers.
The first stage of the regulation applies only to card transactions. Payment service providers will be required to temporarily suspend certain risky electronic payment transactions initiated by customers over 60 or, where suspension is not possible, refuse to process them. Risky transactions include payments exceeding GEL 500 linked to high-risk activities, as well as online trading, forex, investment, gambling or virtual asset services, or transactions that indicate unusual spending behavior.
When a potentially risky transaction is detected, the provider must contact the customer and provide information to help them assess the associated risks. Customers will then have 48 hours to make a final decision. If they still wish to proceed, they must confirm the transaction to their payment service provider.
The National Bank said the updated rules are based on international best practices and are designed to improve customer awareness and reduce the risk of financially harmful transactions resulting from fraud or manipulation. “Protecting the rights of customers, particularly those of retirement age, is one of the National Bank’s key priorities,” the regulator said.
