The Bank of Russia has issued new methodological recommendations to credit institutions aimed at reducing risks associated with money mules and shell companies. The central bank highlights that shadow businesses, such as online casinos, cryptocurrency exchanges, pyramid schemes, and drug dealers, often conduct transactions using corporate cards issued to these so-called shell companies.
To mitigate these risks, the Bank of Russia advises banks to analyze money transfers between individuals’ card accounts and the corporate cards of shell companies. Additionally, banks are encouraged to implement online monitoring systems for client transactions. This would enable them to quickly identify potential money mules and shell companies.
Furthermore, banks should investigate whether their clients have any connections with counterparties who have previously made wire transfers to known money mules. If a risk is identified, banks may restrict the number and amount of certain transactions for transferring money or depositing cash into such clients’ accounts, even outside regular business hours.
These new recommendations are intended to supplement existing guidelines on countering money laundering and financing terrorism.
Alexander Kazakov / TASS provided the preview photo for this announcement.
