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A new consultation from the Chilean financial watchdog seemingly increases the rules imposed on issuers when it comes to fraud liability, coming just two months after the last public consultation on the topic.
Chile’s Financial Market Commission (CMF) is moving swiftly to overhaul the country's fraud reporting regime, with card issuers facing expanded data obligations and a shift to monthly reporting. This relates to the E24 file, which card issuers are required to submit to the CMF.
The CMF’s proposed amendments are intended to update the information obligations under the country’s Fraud Law, which sets out the liability regime for unauthorised transactions caused by loss, theft or fraud.
According to the CMF, these updates are necessary to reflect the sweeping legal changes introduced by legislative updates implemented in May 2024, which granted new rights to issuers and altered the process for handling user claims.
The core of the proposal means that card issuers need to capture each stage of the fraud claim lifecycle, from the initial user notice made by a customer to any legal actions filed by issuers before Chile’s Local Police Courts.
It also captures suspension requests, partial restitutions and court-ordered reimbursements.
New obligations
The CMF has said that, going forward, issuers will be required to file monthly information, starting with July 2025 data in a departure from the current semi-annual schedule.
As shown in the new consultation, stakeholders have already submitted feedback raising concerns about operational feasibility.
During the previous consultation, banks, cooperatives and payment platforms warned the CMF that the increased reporting burden, particularly regarding judicial processes, which vary across jurisdictions, would be difficult for them to manage.
The new regulation also standardises the way issuers must publish aggregate fraud data on their websites, so that there is alignment with the revised E24 file.
For example, these website disclosures must now reflect nuanced timelines for resolving claims, which can vary from 24 hours to 15 days, depending on the type of operation and whether suspensions or legal challenges are involved.
Despite the industry pushback, the CMF makes clear in the new consultation that it intends to push ahead with the revised framework.
The deadline for stakeholders to comment on the updated draft is May 19, 2025.
The final version of the regulation is expected to take effect in the second half of 2025, and issuers will be required to submit the first E24 file under the new rules by mid-August, covering fraud-related activity from July onwards.
Semi-annual reports for the first half of the year will still follow the existing schedule.
