The Russian central bank has advised commercial banks on the identification and blocking of cards and wallet accounts from shady companies. In addition to illegal forex traders and financial pyramids, the regulator has also listed crypto exchangers as suspicious entities.
Bank of Russia’s new AML recommendations target cryptocurrency exchanges
Russia’s central bank has issued a set of criteria banks can use to identify cards and e-wallets used by companies operating in the shadow economy, Forklog reported. According to the monetary authority, this includes not only illegal forex traders and financial pyramids, but also crypto currency exchangers.
The bank pays particular attention to transactions between individuals as the regulator claims that these companies frequently use accounts registered under fake names to make and receive payments. Russian banks are expected to analyze and identify suspicious transactions and discontinue their services as part of their anti-money laundering (AML) efforts.
Among the operations classified as worrying, Bank of Russia lists deposits and withdrawals of cash when they are more than 30 per day. Large numbers of individual payers or recipients, more than 10 per day or 50 per month, should also trigger action on the part of financial institutions.
The same goes for frequent transactions when the total is at least 100,000 Russian rubles (just under $ 1,400) per day or 1 million rubles ($ 14,000) per month, the report said details. Small intervals – less than a minute – between deposits and withdrawals should also alert bank officials.
Accounts that are not used to pay utility bills are considered suspicious
The Central Bank of Russia (CBR) recommends commercial banks to also check cases in which the average remaining balance at the end of each day does not exceed 10% of the average daily transaction volume within a week. Accounts that are not used to pay utility bills or pay for goods and services can also be blacklisted.
A bank customer can be considered suspicious if his transactions meet two or more of the criteria described. To identify such individuals, the Bank of Russia also instructs banks to track digital fingerprints left by account holders, including information to identify devices used to remotely access and transfer funds.
Bank of Russia has spoken out against the legalization of cryptocurrencies and related activities, while other Russian authorities are tracking websites that disseminate information about crypto trading and platforms that provide access to exchange services. In July, the tax authorities issued a recommendation against listing securities linked to crypto assets on Russian stock exchanges.
Do you expect the central bank’s move to severely affect cryptocurrency exchanges in Russia? Do share your thoughts on the matter in the comments below.
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