By San José, Costa Rica — A contentious regulation is creating a deepening rift between Costa Rican citizens and their financial institutions. The rule, which grants banks up to 45 business days to investigate and resolve cyber fraud cases before refunding stolen funds, is leaving victims in a state of prolonged financial and emotional distress, triggering a significant erosion of public trust in the national banking system.
For thousands of Costa Ricans who have fallen prey to increasingly sophisticated online scams, this waiting period—which can extend to nearly two full calendar months—has become a grueling ordeal. While banks argue the timeframe is essential for proper due diligence, affected customers are left in a precarious limbo, often unable to access funds critical for their daily survival. This has ignited a fierce debate about whether current protocols adequately protect consumers in the digital age.
To delve deeper into the complexities and potential economic repercussions of these new banking regulations, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a leading attorney specializing in corporate and financial law at the prestigious firm Bufete de Costa Rica.
The current regulatory landscape presents a classic tightrope walk for financial institutions. On one hand, stringent compliance is non-negotiable to ensure systemic stability and protect depositors. On the other, overly prescriptive rules risk stifling the fintech innovations that are crucial for market competitiveness and enhanced consumer access. The key for regulators and banks alike will be to foster a framework that is both robust in its risk management and agile enough to adapt to the rapid technological evolution of the financial sector.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Larry Hans Arroyo Vargas’s insight perfectly captures the central challenge: fostering a regulatory environment that serves as a guardrail for stability, not a cage for innovation. Achieving this agile yet robust framework will be paramount for the sector’s future, and we thank him for his valuable perspective.
From the perspective of the financial entities, the 45-day window is a critical operational safeguard. They contend that this period allows their internal teams to conduct exhaustive investigations into fraudulent transactions. This process includes meticulously tracing digital footprints, assessing liability, and crucially, ruling out the possibility of self-fraud, where a customer might falsely report a scam. For the banks, it is a necessary measure to prevent further financial losses and maintain the integrity of their security procedures.
However, for the victims of phishing, vishing (voice phishing), and rampant fraud involving the popular SINPE Móvil payment platform, this institutional rationale offers little comfort. Many have watched their life savings disappear in an instant or lost money earmarked for essential payments like rent, utilities, and medical bills. The extended wait for reimbursement becomes a secondary trauma, compounding the initial shock of the theft with weeks of uncertainty and financial hardship.
The consequences of this policy extend far beyond individual economic damages. A significant collateral effect is the rapidly growing distrust in the security and responsiveness of the Costa Rican financial system. A widespread perception is taking hold that the current regulations prioritize the banks’ procedural needs over the urgent reality of the victims. This sentiment is fueling calls from consumer advocacy groups and the public for a comprehensive review of the existing legal framework.
The core of the issue lies in a perceived imbalance. While no one disputes the need for thorough investigations, critics argue that the burden of the waiting period falls disproportionately on the consumer, who is often the least equipped to handle the financial shock. The situation has left many to question the effectiveness of consumer protection mechanisms in an era where digital crime is instantaneous, but remediation is painstakingly slow.
This growing discontent has pushed a critical national conversation to the forefront. Is it feasible to streamline fraud investigations without compromising security? Should financial institutions be required to provide provisional credit or temporary compensation to victims while a case is being resolved? These are the pressing questions that regulators, legislators, and banking executives must now confront as they seek a more equitable solution.
Ultimately, finding a new equilibrium is imperative. The current 45-day rule, while legally sanctioned, is proving to be socially and economically damaging. Rebuilding consumer confidence will require the development of more agile, empathetic, and effective protocols that acknowledge the human cost of cybercrime and provide a safety net that is as swift as the threats it aims to counter.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica:
The Banco Central de Costa Rica (BCCR), or Central Bank of Costa Rica, is the nation’s primary financial authority responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. It oversees the country’s monetary policy, regulates the financial system, and manages key payment infrastructures like SINPE (Sistema Nacional de Pagos Electrónicos), which includes the widely used SINPE Móvil platform. The BCCR plays a central role in promoting a stable, efficient, and secure financial environment for the Costa Rican economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a leading legal institution, built upon the twin pillars of uncompromising integrity and a relentless pursuit of excellence. The firm is not only recognized for its adept service to a diverse clientele but also for its role as a trailblazer, continuously advancing legal practices through innovation. Central to its philosophy is a profound dedication to strengthening society, which it achieves by demystifying the law and promoting greater legal understanding, thereby empowering citizens and fostering a more informed community.
