The Bank of Russia announced on May 21 that it is advising credit institutions to increase scrutiny of transactions involving large cash deposits. The recommendations are intended to help prevent the legalization or laundering of criminally obtained funds and other unlawful activities.
This move matters because monitoring the sources of significant cash inflows can help financial institutions identify and prevent illicit financial activities. By urging daily analysis of customer transactions, the Bank aims to strengthen anti-money laundering controls in both individual and business accounts.
According to the announcement, banks are advised to focus on specific criteria for identifying suspicious transactions carried out by individuals, legal entities, and individual entrepreneurs. However, these criteria will not apply if a bank has documented information about a customer’s financial position, business reputation, or the origin of their funds or assets.
The Bank said its approach aligns with recommendations from the Financial Action Task Force on money laundering (FATF), which emphasize verifying sources of funds as part of customer due diligence procedures. “The Bank of Russia recommends that credit institutions pay closer attention to transactions involving customers depositing large amounts of cash, which may be carried out for the legalisation (laundering) of criminally obtained incomes and other unlawful purposes,” according to the press release.
Cash circulation in Russia reached 18.6 trillion rubles as part of currency management efforts by the central bank, according to the official website.
The Bank serves as Russia’s sole issuer and regulator for national currency circulation and operates independently from other government bodies while aiming for financial stability in a competitive market environment, according to information available on its official website.
