Russian banks get permission to stop suspicious money transfers

Banks in Russia have been given permission to stop suspicious money transfers and debit or credit card transfers of their clients when there are signs of suspicious financial transmission. This comes after, President Vladimir Putin signed a bill to counter embezzlement from banks into law in June.

The new policy gives banks permission to follow appropriate procedures when they detect signs of money being transferred without their client’s consent. The policy gives banks the ability to suspend the transmissions for not more than two days while the country’s Central Bank investigates the transmission.

The banks also get independence to run their own investigation in line with the guidelines provided by the Central Bank. When a transmission is suspended the bank must immediately contact the affected client to confirm the transfer, if there is failure to obtain such a confirmation, the bank can only perform the operation once the two days period has passed.

The law gives the Central Bank the empowerment to create and run a database of unauthorised money transmissions cases.


Further Reporting: Rapsi News

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