Russian Central Bank Combats Illegal OTC Cryptocurrency Services with New Monitoring Platform: Report


The Russian Central Bank is set to develop a new platform that will help it crack down on illegal off-exchange cryptocurrency services and suspicious financial activities.

Central Bank Russia It is said to be planning a new platform aimed at making it harder for shadow companies to abuse banking services for illegal activities, including converting cryptocurrencies into fiat currencies. over the counter Platforms that bypass KYC procedures.

The Bank of Russia is collaborating with the country's financial watchdog Rosfinmonitoring, banks and local experts to create a system that will help identify and block clients involved in illegal financial transactions, Russian news channel RBC reported. ReportsQuoted by Bogdan Shablja, Head of the Department of Financial Supervision and Currency Control of the Bank of Russia.

The platform will reportedly allow the central bank to share information about suspicious activities with financial lenders, helping them prevent illegal financial transactions. The focus is on individuals – also known as “trains” – who offer their bank cards to money laundering or illegal activities, including drug transactions, online casinos, cryptocurrency exchanges/OTC services or hacking websites.

Central database

Chablis explained that the central bank has already established online monitoring systems with some banks to track individual transactions. However, for now, it can only share information about “trains” with banks where those customers hold accounts. Since bad actors often open accounts at multiple banks, there is a need to centralize data and “share information with all credit institutions,” Chablis added.

Currently, banks do not have the authority to refuse to open an account for someone based solely on information indicating that they may be involved in money-dropping activities. The most the bank can currently do is open an account and block remote banking for that account. Chablis explained that these decisions are often made after suspicious transactions occur.

The timeline for launching the platform is unclear, as Shibiliah indicated that the issue is “still under development,” and stressed that the Central Bank aims to find an “acceptable solution” that addresses the problem without creating social tension or affecting honorable citizens.



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