Central Bank Expands Fraud Detection Criteria

The Central Bank has officially expanded its official list of indicators used to identify fraudulent financial operations. According to the updated regulations, a specific new criterion has been introduced to flag suspicious activity. This criterion involves a specific sequence of transactions: a large transfer made by an individual to themselves via the Faster Payments System (FPS), followed shortly by a transfer to an unknown contact.

The updated regulatory framework is set to be implemented across the financial sector starting in 2026. This move is part of a broader effort to modernize fraud detection mechanisms and adapt to new methods used by fraudsters. By focusing on transactional patterns, the Central Bank aims to provide banks with more precise tools to freeze illicit funds before they are moved out of the system.

The Central Bank has introduced a new specific sign of fraudulent operations. This indicator focuses on the behavior of the account holder rather than just the destination of funds. The new rule targets a specific pattern often used by criminals to test an account or transfer stolen funds quickly.

The specific pattern identified by the regulator involves two distinct steps:

• A user first transfers a large sum of money to themselves using the Faster Payments System (FPS).
• Immediately following this self-transfer, the user sends a payment to a contact with whom they have no prior relationship.

This sequence is considered highly suspicious because it mimics the behavior of money mules or account takeovers where funds are moved rapidly to obscure their origin. Financial institutions are expected to monitor for this specific combination of events to flag accounts for further review.

The new regulations regarding the expanded list of fraud signs are not immediate. The Central Bank has established a specific timeline for the implementation of these rules to allow financial institutions time to update their internal monitoring systems.

The updated list of signs will officially come into force in 2026. This lead time is standard practice for regulatory changes in the financial sector, ensuring that banks and payment service providers can calibrate their automated fraud detection algorithms to recognize the newly defined patterns.

The Central Bank maintains and periodically updates the list of signs that help financial organizations detect and block illegal transactions. This list is a critical component of the national anti-fraud infrastructure. By defining what constitutes a "suspicious" transaction, the regulator provides a legal and operational basis for banks to intervene in customer accounts.

Expanding this list reflects the regulator's response to the dynamic nature of financial crime. As scammers develop new techniques, the Central Bank updates its criteria to ensure that the defense mechanisms in place remain effective. The inclusion of the FPS self-transfer pattern is a direct response to current trends in fraud.

For consumers, these changes imply that legitimate transactions fitting this pattern might be subject to additional scrutiny. While the primary goal is to catch fraudsters, customers who frequently move large sums of money for legitimate reasons may encounter temporary holds or verification requests from their banks. However, the Central Bank emphasizes that these measures are necessary to protect assets.

For financial institutions, the update requires an adjustment to compliance protocols. Banks must ensure their systems can distinguish between fraudulent patterns and legitimate financial behavior to minimize customer friction while maintaining security standards mandated by the Central Bank starting in 2026.