Estonia's Ministry of Finance circulates draft law giving banks clearer powers to pause suspected fraudulent payments and share fraud information

Estonia's Ministry of Finance has circulated a draft bill that would give banks clearer and broader powers to prevent payment fraud, including the ability to temporarily halt suspicious payment transactions to verify circumstances and, where fraud is confirmed, not execute the transfer. Under the draft, a bank could intervene where there is a justified suspicion of fraud, based on clear risk indicators, and the intervention must be temporary. The bank would contact the customer to confirm whether they still want to make the transfer, and the payment would not be made if the customer does not. The bill would also allow banks to share information needed to prevent fraud with each other and with the Police and Border Guard Board and the Information System Authority, including information on potential fraud attempts and manipulation techniques; the Ministry linked the measures to growing message and phone scams and noted losses of nearly EUR 29 million in the previous year. The law is planned to enter into force on 1 July 2026.