Bank of Russia recommends banks block cards and wallets used to transact With Crypto Exchangers
The central bank of Russia has advised commercial banks on how to identify and block credit cards and accounts wallet used by shady companies. In addition to illegal currency traders and financial pyramids, the regulator has also listed crypto exchangers as suspicious entities.
New AML recommendations from the Bank of Russia targeting cryptocurrency exchangers
The central bank of Russia has issued a set of criteria that banks can use to identify electronic cards and wallets used by businesses operating in the underground economy, Forklog reported. According to the monetary authority, these are not only illegal forex traders and financial pyramids, but also exchangesers of cryptocurrency.
The bank pays special attention to transactions between private persons because the regulator claims that these entities often use accounts registered under false names to make and receive payments. Russian banks should analyze and identify suspicious transactions as part of their anti-money laundering efforts (AML) and termination services.
Among the transactions considered to be of concern, the Bank of Russia lists deposits and cash withdrawals when they are greater than 30 per day. A large number of individual payers or recipients, more than 10 per day or 50 per month, should also trigger action on the partfinancial institutions.
The same goes for frequent transactions when the total amounts to at least 100,000 Russian rubles (almost $ 1,400) per day or 1 million rubles (14 000 $) per month, the report details . Small intervals - of less than a minute - between deposits and withdrawals should also alert bank officials.
Accounts Not used to pay utility bills to be considered suspicious
The Central Bank of Russia ( CBR ) advises commercial banks to also consider cases where the average balance remaining at the end of each day does not exceed 10% of the average daily volume of transactions in a weeke. Accounts that are not used to cover utility bills or pay for goods and services can also be blacklisted.
A bank customer may be considered suspicious if their transactions match two or more of the criteria described. To identify such individuals, the Bank of Russia further requires banks to track fingerprints left by account holders, including information identifying devices used to access and transfer funds remotely.
The Bank of Russia was s 'oppose the legalization of cryptocurrencies and related activities as other Russian authorities went after websites with information about crypto trading and platforms giving access to the services of 'exchange. In July, the financial authority issued a recommendation against listing securities linked to crypto assets on Russian stock exchanges.
Expect the central bank's decision to seriously affect the exchange of cryptocurrencies in Russia? Share your thoughts on the subject in the comments section below.