Unauthorised transaction (open finance)
A transaction that the user did not consent to, whether it was executed or only initiated.
An unauthorised transaction is one that the user has not consented to, whether it was executed or only initiated. The Central Bank of the UAE's Open Finance Regulation defines it in these terms, which makes the consent record the deciding evidence when a customer disputes an instruction sent through a service initiation provider. For an Islamic product, an unauthorised instruction is also a contract question, because a sale or investment entered into without the customer's valid consent may not bind the customer at all.
Sources
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
Consent (open finance)The customer's explicit, informed permission for a provider to access specified data or initiate a transaction.Service initiationAn open finance service in which a licensed provider initiates a transaction on a customer's account or product, with consent.Consent withdrawal (open finance)A user's right to withdraw open finance consent at any time, which providers must explain when consent is given.Fuduli (uncommissioned agent)A person who deals in another's property without authority; the owner may approve or reject the act.Strong customer authenticationVerifying a customer with at least two independent factors, such as something they know, have or are.