The Central Bank of Russia is taking steps to combat illegal financial activities, including those involving cryptocurrency OTC services. A new platform is being developed to crack down on shadow businesses that misuse banking services for illicit purposes.
Collaborating with the country’s financial watchdog Rosfinmonitoring, banks, and local experts, the Bank of Russia aims to create a system that can identify and block individuals engaged in illegal financial transactions. This platform will enable the central bank to share information about suspicious activities with financial institutions, helping them prevent money laundering and other illegal dealings. Specifically, the focus is on individuals, known as “droppers,” who facilitate activities such as money laundering, drug transactions, online gambling, cryptocurrency exchanges, and pirated websites.
The central bank has already implemented online monitoring systems with certain banks to track individual transactions. However, there is a need to centralize data and share information with all credit institutions to effectively combat illegal financial activities. Currently, banks do not have the authority to refuse an account to individuals suspected of being involved in illicit activities. They can only open an account and block certain banking services for that account after suspicious transactions have occurred.
While the timeline for the platform’s launch remains unclear, the Bank of Russia is working to find an optimal solution that addresses the issue without creating social tension or impacting law-abiding citizens. It is essential to strike a balance between preventing illegal financial activities and safeguarding the interests of honest individuals.
This initiative underscores the commitment of the Central Bank of Russia to maintain the integrity of the financial system and combat illicit activities. By leveraging technology and collaboration with key stakeholders, the bank is taking proactive measures to ensure a more secure and transparent financial environment. Stay tuned for updates on this important development in the fight against financial crime.