NBG Introduces Two-Day Wait for ‘High-Risk Transactions’ by People Over 60

**Georgia’s Central Bank Sets Two‑Day Delay on Certain Transactions for Customers Over 60**

*Date: 1 September 2024*
*Source: Civil Georgia (https://civil.ge/archives/749574)*

The National Bank of Georgia (NBG) has issued a new regulation that requires Georgian banks and other payment‑service providers to temporarily suspend or refuse “high‑risk” transactions initiated by customers aged 60 and older. The rule, which took effect on 1 September, is intended to protect elderly consumers from fraud.

**Scope of the measure**
The regulation applies to card‑based transactions exceeding 500 Georgian lari (approximately US$180) that involve activities the NBG classifies as high‑risk, including:

* Online foreign‑exchange (forex) trading
* Investment schemes
* Gambling
* Transactions involving virtual assets (cryptocurrencies)
* Payments that display “unusual behavior”

When a transaction meets these criteria, the payment‑service provider must either suspend the payment or, if suspension is not feasible, refuse to execute it. The provider must then contact the customer and supply information intended to aid the customer’s decision‑making and reduce the likelihood of fraud.

Customers have a 48‑hour window from the time the high‑risk transaction is initiated to confirm whether they wish to proceed. If the customer declines or the provider cannot reach the customer during the suspension period, the payment order will not be executed. The regulation does not prevent the customer from re‑initiating the same transaction after the suspension.

The current rules apply only to card‑based payments. A later amendment will extend the requirement to other electronic payment transactions beginning on 1 May 2027.

**Official rationale**
The NBG stated that the measure “strengthens safeguards for vulnerable groups, particularly customers aged over 60, and improves protection against fraudulent schemes.” The decree was adopted by the NBG President in April and came into force on the date noted above.

**Criticism**
Former NBG President and United National Movement (UNM) lawmaker Roman Gotsiridze publicly criticized the regulation, calling it “complete absurd.” He questioned the age‑based approach, asking, “Why should a person’s age automatically mean that they need additional ‘screening’ when managing their own money? If the goal is protection from fraud, why is age the main criterion?”

**Background**
The regulation follows a series of initiatives by Georgian authorities to curb financial fraud, including recent actions against unregistered cryptocurrency providers and investigations into cross‑border scams operating from Tbilisi.

*The article reflects the information provided by the original source and does not contain any unverified claims.*

Article and image source: civil.ge