The government and financial regulators have announced that they will be stepping up monitoring of non-cash transactions. The new approaches are aimed at combating fraud, money laundering and terrorist financing, as well as better analysing risky transactions in wartime.
What is changing
The range of transactions subject to automatic monitoring is expanding. Banks and payment services receive updated scenarios for detecting suspicious transactions - serial transfers to linked accounts, splitting of amounts, atypical activity at night, etc.
Customer identification and verification are being strengthened. For certain transactions, banks may request additional data (source of funds, supporting documents).
Emphasis on a risk-based approach. Financial institutions will more often apply in-depth due diligence to customers and transactions with higher risk (large volumes, frequent international transfers, atypical schemes).
Faster exchange of information between institutions and government agencies. This should reduce the response time to fraudulent activities.
Who it concerns
Individuals who regularly carry out large or unusual transactions.
Individual entrepreneurs and companies with active settlements, cross-border payments, and cash handling.
Payment services and banks - they are subject to additional internal control requirements.
It is important to understand
Everyday payments of citizens within the usual amounts will not be blocked. Monitoring is risk-based: attention is paid to transactions that deviate from the client's «profile» or have signs of a scheme.
Requests from the bank are a standard procedure. If an institution asks for confirmation of the source of funds or the purpose of the payment, this is not a violation, but rather part of the updated compliance rules.
What clients should do
Plan large payments in advance and have the supporting documents (contract, invoice, invoice, income statement) at hand.
Do not deliberately split amounts and not to use «chains» of accounts - this only attracts the attention of the monitoring authorities.
Update data in the bank (contacts, KVED for individual entrepreneurs, information about beneficiaries for legal entities).
Check the purpose of the payment - clearly and correctly indicate the purpose of the transaction.
Why it is being implemented
Increased number of cybercrimes and money laundering schemes in wartime.
The need to comply with European financial monitoring standards and FATF requirements.
Customer protection and financial system stability.
Perspective
Banks forecast short-term increase in the number of clarifications for certain payments, but once the models are «trained» and customers get used to the procedures, the process should stabilise. Regulators expect Reducing fraudulent transactions and increasing the transparency of settlements.
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