THE APPLICABLE LAW TO ELECTRONIC FUNDS TRANSFER OPERATIONS-A COMPARATIVE STUDY

Abstract

The issue of the applicable law to electronic funds transfer (EFT) operations is one of the most debated topics in our time. As most means of transaction have shifted toward digitization, this transformation presents a set of challenges and difficulties that the world continues to face. Undoubtedly, the majority of countries, institutions, and banks across the globe have adopted electronic transactions, all interconnected through a single network — the electronic network.
This shift, however, is not without legal and technical problems. From a legal standpoint, it is essential for legislators and legal systems to be present and proactive in addressing the issues faced by the parties involved in EFT operations. This can be achieved either through the enactment of more suitable laws or by concluding international agreements that offer better protection for both clients and banks.
Despite the legal challenges posed by this subject, certain legal provisions have attempted to address these issues. However, such efforts remain limited and insufficient in keeping pace with digital transformation and advanced technological developments. The labor market continues to evolve, while the law often remains static — a disparity that inevitably creates a gap leading to problems and potential harm, especially to the weaker party. Therefore, the law must evolve and adapt in parallel with electronic advancements to effectively resolve these emerging issues.