Russia’s central bank proposes strict oversight on crypto trading transfers
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The Central Bank of Russia (CBR) has called on credit institutions to strengthen control over transactions linked to crypto trading platforms, which it lists among “shadow businesses.” The push comes after the enforcement of a law empowering banks to impose a monthly limit on transfers made by persons suspected of fraudulent activities. It allows them to block card accounts and online banking services. Russian banks told to monitor crypto-related transactions Russia’s monetary authority has instructed commercial banks in the country to catch money transfers between payment cards of private individuals and the corporate cards of ghost firms that show little or no signs of real business activity. Such entities are often used by “shadow businesses,” the regulator said in a circular, listing among these cryptocurrency exchangers, online casinos, financial pyramids, and drug dealers. Russian banks have been asked to swiftly identify these types of transactions, using online monitoring tools “in close to real time mode,” and conduct a thorough analysis of the respective client’s transaction profile, RBC Crypto and Bits.media reported. Banking institutions may restrict transactions of a customer who has been interacting with “counterparties that previously transferred money to droppers” or companies with fictitious activity, the CBR noted. The measures include limiting bank wires and prohibiting cash deposits. “Droppers” is a colloquial Russian term that refers to people lending their bank accounts, cards and wallets to fraudsters who use them to launder criminal proceeds. The central bank has been trying to deal with the phenomenon known as money muling in the West. As part of these efforts, Moscow adopted new legislation, which went into force in mid-May. The law allows authorities to cap the monthly bank transfers of individuals at 100,000 rubles ($1,300) if their bank details have been added to the CBR’s database of suspicious transactions. When the…
Filed under: News - @ June 5, 2025 11:27 am