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| Article 4 (Suspension of Payments) |
| (1) | In any of the following cases, if a finance company suspects that an account is being exploited for telecommunications-based financial fraud through the confirmation of the details of transactions, etc., it shall immediately take measures to suspend payments on all of such account exploited for fraud: <Amended on Jan. 28, 2014> |
| 1. | Where there is an application for the compensation for loss under Article 3 (1) or a request for the suspension of payments under Article 3 (2); |
| 2. | Where an investigative agency or the Financial Supervisory Service established under the Act on the Establishment, etc. of Financial Services Commission (hereinafter referred to as “Financial Supervisory Service") provides the finance company with information that an account is suspected of being exploited for fraud; |
| 3. | Where an account is assumed to be exploited for fraud after taking the measure to identify the account as an account for unconscionable transactions under Article 2-5 (2); |
| 4. | Other matters prescribed by Presidential Decree. |
| (2) | Where a finance company has taken measures to suspend payments pursuant to paragraph (1), it shall notify the following persons of such measures for the suspension of payments without delay: |
| 1. | A holder of the account exploited for fraud, payment from which has been suspended pursuant to paragraph (1) (hereinafter referred to as "account holder"); |
| 2. | A victim that has applied for the compensation for loss pursuant to Article 3 (1); |
| 3. | A finance company that manages the relevant accounts into which money is directly deposited or remitted; |
| 4. | Financial Supervisory Service; |
| 5. | Investigative agencies: |
| (3) | When a user sustains a loss due to a finance company failing to suspend payments in violation of paragraph (1) 1 or 2, such finance company shall be liable to indemnify the loss. <Added on Jan. 28, 2014> |
| (4) | Measures necessary for the procedure for and notification of the suspension of payments under paragraphs (1) and (2) shall be prescribed by Presidential Decree. <Amended on Jan. 28, 2014> |