Russia’s Central Bank to Tighten Oversight on Financial Transactions
The Central Bank of the Russian Federation is launching a new platform to centralize and share information about suspicious financial activities across all credit institutions. The initiative, led by Bogdan Shablya, head of the Financial Monitoring and Currency Control Service, aims to combat illegal schemes involving so-called “droppers”—individuals who use their accounts for activities such as money laundering, drug trade, or unregulated online transactions.
Under the current system, the Central Bank can only notify the bank involved in a flagged transaction. The new platform will allow all financial institutions to access this data, enabling them to block accounts or refuse services to flagged individuals. Additionally, law enforcement agencies will be granted access to data on individuals identified as droppers.
Shablya highlighted that banks failing to act on flagged accounts could face regulatory penalties. This initiative aims to deter shadow businesses by increasing risks and costs for those exploiting the financial system.
This effort reflects a broader collaboration between regulators and financial institutions to enhance transparency and effectively combat financial crimes.
