Regulation requires credit card blocking for transfers under 500 and 1000 rubles; law enacted
In today's digital age, bank cards have become a common means of transaction. However, they are not immune to potential fraud, money laundering, or other illegal activities. Banks employ various measures to safeguard their customers and comply with regulations.
One such measure is the use of Anti-Money Laundering (AML) software and transaction monitoring systems. These tools help detect patterns that do not align with a customer's usual behaviour, such as rapid, repeated transfers, especially when involving high-risk countries or inconsistent transaction volumes. When such behaviour is flagged, banks may freeze transactions or block cards to prevent fraudulent activities and comply with regulations like the USA PATRIOT Act and FATF recommendations.
The rise of instant payments, which settle transactions immediately and irrevocably 24/7, while beneficial for certainty of funds, also increases fraud prevention challenges. The instantaneous nature means banks need to be more vigilant, sometimes resulting in blocks if suspicious rapid transfers are detected.
If an account is frozen due to such concerns, also known as a bank levy when involving creditor claims, account holders can handle the situation by promptly contacting the bank to understand the reason for the freeze. If the freeze is due to suspected suspicious activity, banks usually conduct an internal review and may request additional information or documentation to verify identity and transaction legitimacy. If the freeze relates to a bank levy for debt collection, legal steps such as disputing the levy due to errors or expiring limitations, or potentially filing for bankruptcy, may be necessary to release the funds.
Cooperation with the bank and timely compliance with their requests is crucial to resolving freezes or blocks on accounts or cards. Preventively, account holders should ensure their transaction patterns are consistent with their usual behaviour and avoid making transfers that could be flagged as unusual.
Banks monitor all operations between cards, triggering automatic monitoring if more than thirty transfers are made in a day or funds are sent to more than ten recipients. They also track operations with devices listed in the CB database and transfers to accounts of individuals previously involved in illegal activities. Complex cases involve returning more than 100,000 rubles from a mobile account or depositing a million into someone else's account.
However, honest clients who use their cards for purchases, services, or occasional transfers to friends and relatives face no serious risks. Quick transactions, where money enters and leaves the account almost instantly, increase vigilance. Transaction descriptions or patterns that seem suspicious can lead to account restrictions. Comments on transfers containing suspicious words or phrases related to loans, investments, or gambling can lead to an operation being refused.
Banks also monitor small, regular money transfers for services like taxis, coffee, or debt repayments. In some cases, cards are temporarily blocked, and the owner is contacted to explain the situation. Occasional transfers related to gifts or debts still pose no risk, but illogical and mass activity may lead to restrictions.
New amendments to the "anti-money laundering" law, effective from 1 June 2025, allow government agencies to suspend operations suspected of "dropping" (using fake accounts to transfer other people's funds) for 10-30 days. In 2025, frequent bank card transfers can lead to card blocks and serious restrictions.
In all cases, it is essential to maintain open communication with the bank and provide explanations and necessary documents to increase the chance of regaining account access. Prompt action can help resolve issues quickly and ensure the smooth operation of your bank card.
In the financial sector, businesses and their customers are reliant on banks' anti-money laundering measures to safeguard transactions and comply with regulations, such as the USA PATRIOT Act and FATF recommendations. Moreover, these measures extend to monitor business activities, like regular small transfers for services or taxis, to detect any unusual or suspicious patterns that could indicate potentially fraudulent activities.
