Banks Central roll out surveillance: anticipated complexity in cash withdrawals
New Central Bank of Russia Rules to Tighten Control on 'Mule' Accounts
The Central Bank of Russia (CBR) has introduced new restrictions on bank accounts linked to 'mules', effective from September 1. These measures are aimed at curbing money laundering, fraud, and crypto-related illicit activities within Russia's banking system.
Under the new rules, banks are empowered to freeze or limit account access if accounts are suspected of involvement in money laundering, fraud, or crypto-related illicit activities. This means that accounts identified as connected to mule networks or suspicious transactions can face partial restrictions, such as disabling the use of payment cards and banking apps at a particular bank, or full restrictions, like blocking the use of cards and platforms across all banks.
The CBR-directed measures include blocking cash deposits and withdrawals, freezing funds, and disabling remote access services like banking apps and online transactions. Banks are also implementing advanced behavioral and transaction monitoring systems designed to detect abnormal patterns suggesting mule activities, such as frequent use of multiple accounts from the same device or unusual geolocation logins.
These new rules limit the ability of mule-linked accounts to perform cash withdrawals and use remote banking services. Any transfer above 100,000 rubles from 'mule' accounts requires a personal visit to the bank branch. This tightens controls to detect and block illicit money flows within Russia’s banking system ahead of the 2026 digital ruble launch.
The new measures also bring to light schemes involving the "legalization" of stolen funds through personal cards of ordinary people. Recipients may unintentionally end up on the blacklist due to money transfers for withdrawal through criminal networks. Law-abiding citizens are reminded to be more vigilant and avoid using their accounts for suspicious activities.
From May 15, 2025, remote transfers between 'mule' accounts will be allowed, but with a monthly limit of 100,000 rubles. The CBR is working to close loopholes for cashing out stolen funds and enhance client protection.
Criminals have started using new 'mules' and straw men more frequently, and it is advisable to decline unknown transfers or avoid using cards at the request of barely acquainted individuals. The new rules aim to eliminate the possibility of quick cashing out and instant transfers of large sums by criminals.
[1] Central Bank of Russia Official Statement [2] Banking Industry Report on AML Measures [3] Financial Crime Enforcement Network Report [4] Russian Federation Law on Crypto Transactions [5] Banking Association of Russia Guidelines on Suspicious Activity Reporting
- The new rules introduced by the Central Bank of Russia (CBR) will restrict 'mule' accounts, not just in terms of cash withdrawals and remote banking services, but also by requiring any transfer above 100,000 rubles from these accounts to be made in person at a bank branch.
- The tightened controls on 'mule' accounts are not limited to the banking sector within Russia; they also include measures to prevent the 'legalization' of stolen funds through personal cards, thus reminding law-abiding citizens to be vigilant and avoid suspicious activities.
