The Central Bank of Russia Considers Crypto Transactions Prone to Money Laundering

News / 17.02.2020

On February 17, Russian finance published a report noting that the Central Bank of Russia created new guidelines to curb suspicious crypto transactions. 

According to these new rules, all crypto transactions are deemed as a potential money laundering risk.

This new set of rules, which comes to update directive 375-P, notes some possible signals that will prove some suspicious money laundering associated activities. This update comes long after the 2012 release of the initial set of rules. 

These new rules were designed by the Central Bank of Russia partnership and the Federal Service for Financial Monitoring. 

CRB’s representative noted that the guidelines are for managing unusual operations in the newly added schemes while at the same time considering and appreciating the developments seen in financial markets.

The CBR’s Head also noted that before now, it was vital to minimize the risk factors, a practice that is common in other financial platforms globally. For instance, in many countries, a bank can freeze suspicious accounts in fraudulent transactions or where there are suspicious transactions. 

Primarily, the regulators have generalized all activities in the crypto world as a potential risk. 

The same release dictates the parameters required to classify some cash transactions as suspicions. Take, for instance, a person who regularly cashes out all money obtained from a legal entity.  

However, the crypto world is most affected by the guidelines since all buy and sell activities are considered a risk of money laundering. 

The set guidelines’ release is just an effort by the legislative authorities to amend the proposed 2018 law on digital financial assets. Currently, crypto-assets in Russia see the worst days, with the regulators considering to ban the cryptocurrencies.

avatar
Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.