The Russian State Duma is developing a bill to apply anti-money laundering measures to the digital ruble platform. According to the State Duma Committee on Financial Markets, it is time to adopt the bill that would allow banks to block suspicious transactions. Once approved, the bill will take effect on January 1, 2025.
The bill was introduced in March by deputies and senators led by Anatoly Aksakov. The digital ruble is a new form of national currency intended to modernize Russia’s financial system.
Central Bank Takes On Major Role
The bill proposes a multi-level anti-money laundering model for the digital ruble platform. The Central Bank of Russia will play a key role in this model, enforcing anti-money laundering measures and monitoring transactions. Users will fall into three risk groups, and the bank can freeze funds in suspicious cases. If requested by Rosfinmonitoring, the Central Bank must deny accounts for high-risk entities.
The Central Bank will also report suspicious activity, including funds frozen due to anti-money laundering laws. The platform will send this data to Rosfinmonitoring for further examination. Credit institutions on the platform will also verify clients and transfer this information to the Central Bank. Banks that violate anti-money laundering rules may have their licenses revoked.
Transparency and Security Measures
The bill aims to increase transparency on the digital ruble platform. Experts believe this approach will encourage the legal use of the digital ruble. A multi-level model will help to prevent the misuse of digital rubles for criminal purposes. The Central Bank’s power to refuse transactions, freeze funds, and terminate accounts is central to this effort.
Banks will use similar procedures to those used by other financial institutions. There will be an appeal process for disputed decisions, with input from public organizations and banking associations.
By increasing transparency, the bill seeks to curb money laundering and terrorism financing. The digital ruble is under state control, making all transactions visible to the Central Bank. The government’s goal is to make the digital ruble less attractive for illegal activities.
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