Transfers to relatives without limits: how will banks determine family ties?

As is known, today the Association of Banks of Azerbaijan (ABA) and the Azerbaijan Fintech Association clarified the issue of the introduction, as of August 1, of limits on "card-to-card" transactions using bank cards in the country.

For each payment instrument belonging to payment service users, it will be permitted to carry out crediting transactions a maximum of 5 times per day and in an amount not exceeding 20 thousand manats per month.

The statement notes that this approach is based on a risk assessment and does not provide for restrictions on transactions of a lawful nature. Thus, crediting transactions between payment instruments belonging to the clients themselves of banks and electronic money institutions, as well as to their close relatives, do not fall under the established limits.

However, a question arises: how will this process be regulated and how will the family relationship between the parties be determined in "card-to-card" transfers?

The head of the ABA expert group, Tamerlan Rustamov, stated that in such cases the transactions will be analyzed:

"The bank, just as when determining whether a transaction is safe, risk-based and does not have a commercial nature, will similarly clarify with the client, through the payment system operator, the format of the transaction carried out. If the transaction is of a lawful nature and is a transfer to a family member, this can be determined after receiving the necessary information from the client."

According to him, if the cards are linked to a single account, it will be easier to determine this. For example, if a person issues several cards in his own name for the same account, establishing the connection will not be difficult. However, with transfers between different accounts, at the initial stage it is technically impossible to determine family ties, since such data are not specified during the transaction.

Rustamov noted that after the client's request, the transaction may be additionally reviewed and excluded from the limit calculation:

"When transferring between parties, it is not required to provide information about family ties. This is how it works both here and in any other country in the world. This is an ordinary "card-to-card" transaction or payment by card — data on kinship are not transmitted there."

According to him, if questions arise after the transaction is carried out, the client will be able to contact the bank and indicate that the transfer was made to a relative, child or other close person. After confirmation of the necessary information, the transaction may be recognized as meeting the conditions for exclusion from the limits.

Source: Qafqazinfo