CBR advises banks to block cards and wallets transact with crypto exchanges. The central bank of Russia has showcased guidelines for commercial banks on how to identify and block dubious organizations’ cards and wallet accounts. CBR also added Crypto exchanges to the list of questionable businesses, alongside illegal currency traders and financial pyramids.
New AML Recommendations by Bank of Russia Target Cryptocurrency Exchangers
According to Forklog, Russia’s central bank has established a list of criteria for banks to follow. In order to identify cards and e-wallets used by shadow economy businesses. Not only illicit forex traders and financial pyramids, but also crypto exchanges included in the list, according to the monetary authorities.
The bank pays special attention to transactions involving private individuals. Since the regulator alleges that such entities frequently make and receive payments using accounts opened under fake identities. As part of their anti-money laundering (AML) measures, Russian banks obliged to evaluate. As well as detect questionable transactions and terminate services.
The Bank of Russia mentions deposits and cash withdrawals of more than 30 per day among the transactions that maybe regarded as concerning. Financial institutions should also take action if there are more than 10 individual payers or receivers per day or 50 per month.
The same is true for regular transactions of at least 100,000 Russian rubles ($1,400) per day or 1 million rubles ($14,000) each month, according to the article. Bank regulators should be concerned about short gaps — less than a minute — between deposits and withdrawals.
Accounts Not Used to Pay Utility Bills are Suspicious
Commercial banks should investigate situations. Where the average residual balance at the day’s end does not surpass 10% of the average daily transaction volume over the course of a week, according to CBR. Accounts that aren’t utilized to pay for utilities or products and services may also be banned.
If two or more of the requirements are met, a bank’s client may be considered suspect. The Bank of Russia also directs banks to trace digital fingerprints left by account holders. Including information identifying devices used to access and transfer cash remotely, in order to identify such persons.
The Bank of Russia has opposed the legality of cryptocurrencies and associated activities. While other Russian authorities have targeted websites that spread information about cryptocurrency trading and platforms that provide exchange services. The financial regulator advised against the launching of securities linked to cryptocurrency assets on Russian stock markets in July.