The Central Bank recommended that banks block pyramid accounts – Kommersant

The Bank of Russia has issued recommendations for banks, in which credit institutions are asked to “in-depth check” accounts from the list of “suspicious clients.” The Central Bank recommends blocking the accounts of companies with signs of financial pyramids and illegal activities.

“Banks can identify illegal immigrants among their clients using a list of companies with signs of illegal activity and financial pyramids, as well as information from the Know Your Customer platform. The Bank of Russia recommends in-depth checks of clients on the list, and if their transactions are considered suspicious, refuse to carry out them,” it is reported on website regulator

The bank may terminate the bank account agreement after two refusals within a year. In addition, if a suspicious customer is assigned a high risk level in the Know Your Customer platform, the bank is recommended to increase the risk assessment for him. In case of blocking, the client will be deprived of the opportunity to manage money in the account or will be excluded from the list of Unified State Register of Legal Entities/Unified State Register of Individual Entrepreneurs.

Moreover, in the case of companies with signs of illegal activities or financial pyramids, banks can apply “anti-money laundering” measures, but not refusal or blocking measures.

For nine months of 2023 Central Bank revealed 2176 financial pyramids. This is 47% more than for the whole of 2022. Compared to 2021, the growth was 250%.

How the authorities plan to protect citizens – in the Kommersant material “Pyramid builders will be given status”.

Anastasia Larina