Brazilian banks to block user resources for 72 hours if fraud is suspected

Central Bank of Brazil has announced that financial institutions that suspect fraud may block suspicious resources from a receiving user’s account for up to 72 hours.

This measure is effective as of November 2021. According to the Basel Convention, this measure will allow the financial institution to conduct a ‘more robust’ analysis of potential fraud ‘which will increase the likelihood of resource recovery by paying users who have been victims of certain crimes.’ The organisation must notify the user who receives the ban.

Another measure announced by the jury is the obligation to notify the violation, even for transactions in which the payer and the recipient have an account at the same institution. Currently, the notification is optional.

In a note, BC explained that the mechanism allows organizations to flag a Pix key when there is a strong suspicion of fraud. This information can be accessed by any organization participating in Pix.