Financial institutions are limiting money transfers to accounts tied to suspected fraudulent banks.
Rewritten Article:
Starting May 15, citizens found in the Bank of Russia's fraud database face new limitations on their banking transactions. These individuals will be capped at transferring 100,000 rubles per month if they haven't had their online banking or cards blocked. For transfers exceeding this limit, a visit to the bank with a valid ID is mandatory, PrimaMedia reports.
Fraudsters often use innocent individuals, known as "mules" or "droppers" in Russian, to cash out stolen money. These individuals are tasked with transferring money between cards, withdrawing and handing over cash to couriers, or depositing it into other accounts, in exchange for a promised reward.
The Central Bank of Russia keeps a record of fraudulent operations and their recipients (mules). Banks have the authority to temporarily halt the use of bank cards, online banking, and other electronic payment methods if a client's data matches those in the Central Bank's database.
Such restrictions are intended to permit essential transfers while preventing citizens from being involved in withdrawing and cashing out stolen funds, the regulator stated.
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However, exceptions will be made for payments to legal entities. Individuals in the Central Bank's database will still be able to use cards and online banking to purchase goods in stores or online marketplaces, or pay for utilities and services.
The law regulating such restrictions for mules was passed in February 2025. It also presents a cooling-off period for loans and credit agreements, effective from September 1.
Remember, it's wise to avoid transferring money to strangers and refrain from sharing online banking details to steer clear of fraudulent activities, advice provided by the Central Bank.
These regulations are part of a broader initiative to fortify financial security and diminish fraudulent activities in Russia.
KEY INSIGHTS:
- The new rules aim to curb financial flows and reduce instances of fraud by implementing strict transaction limits and updating security systems more efficiently [2, 5].
- Credit institutions must develop procedures to prevent consumer loan agreements being concluded without the client's consent as a part of broader efforts to combat fraud [2].
SOURCES:
- Challenging times ahead for self-employed individuals
- News on economics and business in the Far East
- To minimize criminal activities such as cashing out stolen funds, the new regulations in Russia will impose stricter transaction limits on individuals found in the Central Bank's fraud database, affecting their business and general-news activities with banking transactions.
- The crackdown on fraudulent activities in Russian finance is not only limiting transactions for identified individuals, but also requires credit institutions to strengthen security measures to prevent consumer loan agreements in business without the client's consent, as part of a broader initiative to enhance financial security and justice.
