Russia’s Central Bank Urges Banks to Block Cards and Wallet Accounts of Illegal Crypto Exchangers

Russia’s Central Bank has urged the country’s banks to suspend cards and wallets used by suspicious businesses and dealers. The apex bank drew up criteria for registration of businesses, including exchangers, and advised banks on how to spot unscrupulous entities. This is in a bid to curb money laundering and other illegal monetary processes executed in the nation.

Russia Outlines New Anti-Money Laundering Criteria for Crypto Platforms

The monetary head issued some guidelines that banks can utilize to mark cards and digital wallets used by businesses operating in the dark. According to Russia’s financial head, this set of guidelines will apprehend unscrupulous businesses in the traditional financial system and in the DeFi space. 

Russia’s Central Bank emphasizes that banks need to monitor transactions between private entities closely. The financial regulator draws their attention to the method the individuals use in sending and making payments. The monetary body reveals that many private individuals use falsified accounts to transact to avoid getting caught. Therefore, commercial banks must intensify their efforts in the pursuits of these offenders through the AML regulations.

Speaking of the new AML criteria, the top bank urged commercial banks to follow in its footsteps in publishing lists of transactions over a particular period. The monetary head revealed that it publishes deposits and cash withdrawals by customers when they exceed thirty per day. As a result, they recommend that commercial banks should do the same when transactions exceed ten per day or fifty per month. 

The new AML rules also state that banks should publish transactions that amount to 100k rubles every day (approximately $1,400) or a million Rubles (about $14k) in a month. In addition, transactions, whether deposit or withdrawal occurring at small intervals, let’s say less than a minute, should call the bank’s attention. 

CBR Urges Banks to Classify Accounts Not Used for Payment of Goods and Services, Utility As Suspicious

The Russian Central Bank recommends that banks be alerted about transactions that occur within seven days if the average balance at the end of a 24-hour period is 10% lower than the average daily transaction volume at the end of the week. In addition, accounts with no records of utility bills payments should be checked and sanctioned if found guilty. Furthermore, banks should track down fingerprints of account holders and other crucial information if they are found guilty of two of the three criteria listed above. 

Russia’s top bank has been against the idea of cryptocurrency legalization in the country, despite some Russian authorities promoting crypto platforms behind closed doors. The apex bank stance on cryptocurrency has negatively affected investors, and the current criteria could further endanger crypto exchanges in the country.