# Cross-border payments, crypto-assets and jurisdiction URL: https://insurancelawestonia.ee/specialty-lines/handbook/cross-border-payments-crypto-jurisdiction/ Author: Dr Olavi-Jüri Luik, Partner, Head of Insurance Law, attorney at law (Advokaadibüroo WIDEN OÜ) Last updated: 2026-11-05 > Cross-border fraud payments, crypto-assets and sanctions, multi-jurisdiction disputes and international programmes for Estonian insureds. > **In short.** Cyber, crime and D&O risks are international by nature. Money crosses borders in seconds, attackers operate from other countries and a dispute may involve several legal systems at once. The international dimension must be taken into account already when the insurance programme is put together: applicable law, jurisdiction, territorial scope, local policies and sanctions.[^1] For insurers, the chapter also shows where an Estonian loss creates recovery opportunities abroad and where sanctions and local-policy requirements constrain the response. ## 1. Cross-border payments Payments made as a result of fraud often pass through several countries and banks. This makes both the recovery of the money and the proof of the loss more difficult. When money moves quickly from one jurisdiction to another, freezing it becomes time-critical, and after a few days it is often impossible. **Practical steps:** - within the first hour, a request to one's own bank to recall the payment and to notify the recipient bank; - a criminal complaint in Estonia and, where necessary, in the country of the recipient bank; through a request for legal assistance, the investigating authority can seek the seizure of the money abroad; - civil interim measures (securing of the action, *hagi tagamine*) in Estonia or abroad (this often requires the involvement of local counsel); - documentation of the flow of funds with the help of financial forensics. **From the insurance perspective**, the company must be able to document the movement of the money and show that the loss was direct. The insurer may dispute the extent of the loss if the reconstruction of the cash flows is deficient. Amounts recovered reduce the indemnity; if they are received after the indemnity has been paid, they must be settled with the insurer in accordance with the policy and the rules on subrogation (Law of Obligations Act (*võlaõigusseadus*, VÕS) § 492).[^2] The insurer may be interested in funding proceedings abroad, because this improves the prospects of its recovery: it is worth discussing this with the insurer early. ## 2. Crypto-assets Ransomware attacks mostly use crypto-assets as the means of payment. Money moves outside the traditional banking system, and transactions are harder to trace. The blockchain allows transactions to be traced to some extent, but this does not always lead to recovery where wallets are anonymous or linked to jurisdictions with limited law enforcement. **Insurance questions:** - whether a ransom is covered at all (many cyber policies cover extortion costs but require the insurer's prior consent); - how to value a crypto payment (exchange rate movements between payment and indemnification); - what evidence is needed (wallet addresses, transaction hashes, a log of the negotiations); - whether the crime policy's definition of "money" or "securities" includes crypto-assets. **Sanctions and money laundering.** If the recipient of a ransom payment is a sanctioned person or is connected with one, the payment may be prohibited and give rise to liability. EU sanctions are directly applicable, and insurance contracts contain a sanctions clause under which the insurer is not obliged to pay if payment would breach sanctions. Before any payment to an attacker, a legal assessment and the insurer's consent are needed (see [sanctions and insurance in Estonia](https://insurancelawestonia.ee/guides/sanctions-and-insurance)). ## 3. Disputes in several jurisdictions When a loss concerns several countries, legal systems may assess the same event differently. A court in one country may consider an act to be fraud and a court in another may not; the rules on evidence, liability and compensation differ. **In D&O insurance** this is particularly important: claims may be brought against executives in countries where the standard of care and the procedure are different (for example US securities class actions, the Dutch collective settlement, German shareholder derivative actions). The territorial scope of the policy and any US/Canada exclusion must be checked before the company lists securities on a foreign exchange or expands into those markets. **Applicable law and jurisdiction.** Insurance contracts contain applicable law and dispute resolution clauses. If these do not match the geography of the company's business, the cover may operate in unexpected ways. The country where the risk is situated is determined under the Insurance Activities Act (*kindlustustegevuse seadus*, KindlTS) § 9, and it matters both for supervision and for the applicable law.[^3] Within the European Union, special rules on insurance contracts apply both to the applicable law (the Rome I Regulation) and to jurisdiction (the section on insurance matters in the Brussels Ia Regulation); they protect the policyholder but allow greater freedom of contract for large risks (Rome I art 7(2); Brussels Ia art 15(5) and art 16(5)). Under Estonian law, the parties may also depart from the provisions of the VÕS that protect the policyholder where large risks are concerned (VÕS § 427 lg 3).[^4] The English-language treatment of applicable law and jurisdiction in insurance matters is in the guides [choice of law and jurisdiction for insurance contracts in Estonia](https://insurancelawestonia.ee/guides/choice-of-law-jurisdiction-insurance-estonia) and [large risks under Estonian insurance law](https://insurancelawestonia.ee/estonian-insurance-contract-law/large-risks). ## 4. An international insurance programme Larger companies use a multi-level solution: - **a master policy** at the level of the parent company; - **local policies** in countries where local law requires a policy from a locally authorised insurer, or where a local policy is needed for tax or supervisory reasons; - **difference in conditions and difference in limits cover**, which fills the gap between the local policy and the master policy; - **financial interest cover**, which makes it possible to compensate the parent company for a subsidiary's loss in countries where direct cover is not permitted. Such a structure ensures that the cover meets local requirements while also covering cross-border risks. It requires careful coordination to avoid overlaps and gaps. ## 5. The role of experts in a cross-border loss International cases require both financial forensic specialists who can trace cash flows across borders and lawyers who know the law of the countries concerned. Without coordination, the claim becomes fragmented. Insurers often have their own international network (panel), which can be used, but it may also be in the policyholder's interest to have an independent adviser. The international dimension means that risks can no longer be controlled at the local level only. Cross-border payments, crypto-assets and multi-jurisdictional disputes make both the occurrence and the compensation of a loss more complex, and they must therefore be taken into account in advance. ## 6. What to look for in the policy when the risk is international | Question | Where in the policy | Why it matters | |---|---|---| | Territorial scope | Scope of cover, exclusions | Whether cover applies in the countries where subsidiaries and customers operate | | Jurisdictional scope | Exclusions (often USA/Canada) | Whether actions in foreign courts are covered | | Applicable law | General provisions | Under which country's law the policy is interpreted | | Dispute resolution | General provisions | Court or arbitration; seat and language | | Sanctions clause | General provisions | The insurer does not pay if payment would breach sanctions | | Currency | Sum insured, indemnification | Exchange rate risk in a large loss | | Local policies | Programme structure | Whether a local policy is needed in the subsidiary's country | ## 7. Checklist for a cross-border fraud 1. The bank has been notified and a recall of the payment requested (within the first hour). 2. A criminal complaint has been filed in Estonia and, where necessary, also in the country of the recipient bank. 3. The insurer or insurers have been notified, and the deadline for the proof of loss has been recorded. 4. The movement of the money has been documented (payment orders, SWIFT messages, correspondence with the bank). 5. The need to involve foreign counsel has been assessed (interim measures, obtaining information from the bank). 6. Amounts recovered have been recorded and reported to the insurer. 7. The claim against the wrongdoer has been preserved; no waiver or settlement has been concluded without the insurer (VÕS § 492).[^2] ## 8. Typical mistakes in an international loss - **Relying only on the Estonian proceedings.** A criminal complaint in Estonia is necessary, but freezing money abroad often requires local action immediately, not weeks later. - **Forgetting the local policy.** If there is a local policy in the subsidiary's country, the loss must also be notified to that insurer and the deadlines of the local policy must be observed. - **Currency and exchange rate risk.** The loss and the indemnity may be in different currencies; the policy must be checked for the exchange rate on which the indemnity is calculated. - **Inconsistent descriptions.** Statements made in different countries to the police, the bank and the insurer must be consistent in substance. - **Failing to screen for sanctions.** Before any payment to a foreign person (including an adviser or a negotiator), the sanctions lists must be checked. ## Related pages - [How to present a claim](https://insurancelawestonia.ee/specialty-lines/handbook/claim-documentation-and-evidence) - [Integrated insurance programmes](https://insurancelawestonia.ee/specialty-lines/handbook/integrated-programmes) - [War exclusions and cyber insurance under Estonian law](https://insurancelawestonia.ee/guides/war-exclusions-and-cyber) - [Estonian Supreme Court: subrogation and recourse](https://insurancelawestonia.ee/supreme-court/subrogation-and-recourse) - [Case collection](https://insurancelawestonia.ee/specialty-lines/handbook/cases) ## References [^1]: O.-J. Luik. Ettevõtte juhtkonna riskiraamat [A risk handbook for company management]. Manuscript, as of 03.05.2026, ch 37. [^2]: Law of Obligations Act (võlaõigusseadus, VÕS) § 492. RT I, 20.06.2026, 18 (in force 01.09.2026). Estonian: ; English: . [^3]: Insurance Activities Act (kindlustustegevuse seadus, KindlTS) § 9. RT I, 11.07.2026, 140 (in force 21.07.2026). Estonian: ; English: . [^4]: Regulation (EC) No 593/2008 of the European Parliament and of the Council (Rome I), art 7(2). ; Regulation (EU) No 1215/2012 of the European Parliament and of the Council (Brussels Ia), art 15(5), art 16(5). ; VÕS § 427 lg 3 (n 2).