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- According to the reports on Thursday, the Central Bank of Russia (CBR) has asked the commercial banks to tighten their supervision of users’ transactions so that “special economic measures to counter the outflow of foreign currency abroad,” can be avoided.
- Moreover, it is advised that if necessary, the Suspicious transactions must be blocked while the information related to them should be sent with the Federal Financial Monitoring Service (Rosfinmonitoring).
- With the recommendations, the CBR wants to prevent the growth of schemes to avoid the imposed limits, especially using cryptocurrency exchanges, explains Aleksey Voylukov, vice-chairman of the Russian Banks Association.
According to local media on Thursday, the Central Bank of Russia (CBR) urged that commercial banks increase their supervision of users’ transactions in order to prevent the special economic measures of CBR to combat the outflow of foreign currency overseas. Closer control of cryptocurrency trading is also recommended as one of the methods for removing money from Russia.
In a letter addressed to financial companies Yuri Isaev, deputy chairman of CBR, on Wednesday directed them to pay more attention to the strange behavior of their clients. Further, it was advised to ban Suspicious transactions if necessary, and information concerning them should be sent with the Federal Financial Monitoring Service (Rosfinmonitoring).
Special measures were adopted to hinder the outflow of foreign cash in the early days of the Ukraine war and the ensuing economic sanctions.
They include a $5,000 limit on foreign currency transactions for Russian citizens and a $10,000 cash limit for individuals traveling overseas. Government approval will be required for Buying real estate, securities, and other assets from people who live in “unfriendly.”
Aleksey Voylukov, vice-chairman of the Russian Banks Association, in a statement, said that the CBR’s recommendations aim to prevent the growth of schemes to avoid the imposed limits, especially using cryptocurrency exchanges.
Given that more than ten million Russian citizens own roughly 5 trillion rubles ($63 billion) in cryptocurrency, the findings came as no surprise. Many Russian people are left with little choice but to use cryptocurrency to move their funds after their Visa and Mastercard cards were banned and their own government imposed tight transaction limitations.
Despite numerous reports of Russian oligarchs attempting to hide their wealth, ordinary people are ultimately the ones who depend on the digital asset infrastructure in the face of surging inflation and tightening government monetary control.
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