Bank of Russia issues recommendations to Reduce risks related to money mules’ and shell companies’ accounts

Bank of Russia has issued methodological recommendations to Reduce risks related to money mules’ and shell companies’ accounts.

The Bank of Russia reminds credit institutions that shadow businesses (online casinos, cryptocurrency exchange offices, pyramid schemes, drug dealers, etc.) make their settlements using corporate cards issued to the so-called shell companies.

To prevent these risks, the regulator recommends that banks analyse money transfers from individuals’ card accounts to the accounts of shell companies’ corporate cards and vice versa.

Banks are also advised to introduce online monitoring of clients’ transactions to promptly identify money mules and shell companies. Banks should check whether their clients have counterparties that made wire transfers to money mules earlier. If the risk is confirmed, a bank may limit the number and amount of certain transactions to transfer money and deposit cash into the account of such a client, including outside business hours.

The new methodological recommendations supplement the existing document on countering money laundering and the financing of terrorism.