Estonian government approves bill allowing banks to pause suspected fraudulent payments

The Estonian government approved a bill on Thursday giving banks a legal basis to temporarily halt suspicious payments. The legislation also allows financial institutions to exchange fraud-related information with each other.

The Estonian government approved a new legislative bill on Thursday that grants banks the legal authority to temporarily suspend payments suspected of being fraudulent. The move is part of broader efforts to strengthen consumer and financial protection in Estonia.

Under the new proposal, banks will be permitted to freeze transactions where fraud is suspected, buying time for further verification before funds are transferred. Crucially, the bill also establishes a framework for banks to share fraud-related information with one another — a step that could significantly improve the speed and coordination of responses to financial crime.

The bill now moves forward through the legislative process for further review and passage. If enacted, it would give Estonian financial institutions clearer tools to act swiftly against scammers while also fostering inter-bank cooperation in detecting and preventing payment fraud.