URL copied successfully.
Press CTRL+V or paste display URL.
| Article 4 (Suspension of Payments) |
| (1) | In any of the following cases, if a financial company suspects that an account is being exploited for telecommunications-based financial fraud through 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; May 16, 2023> |
| 1. | Where there is an application for remedy for loss under Article 3 (1) or a request for the suspension of payments under Article 3 (2) or (4); |
| 2. | Where an investigative agency or the Financial Supervisory Service established under the Act on the Establishment of Financial Services Commission (hereinafter referred to as “Financial Supervisory Service") provides the financial 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 financial company has taken measures to suspend payments pursuant to paragraph (1), it shall notify the following persons of matters regarding 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 remedy for loss pursuant to Article 3 (1); |
| 3. | A victim notified to the financial company pursuant to Article 3 (3) or 6 (2); |
| 4. | A financial company that manages the relevant accounts into which the amount of loss is remitted or transferred; |
| 4. | Financial Supervisory Service; |
| 5. | Investigative agencies: |
| (3) | When a user sustains a loss due to a financial company failing to suspend payments in violation of paragraph (1) 1 or 2, such financial 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> |