Russia’s financial watchdog, Rosfinmonitoring, will gain the authority to suspend money transfers suspected of being linked to fraud, money laundering, or the financing of extremism, effective June 1st. The agency announced the measure on May 31st, with the aim of combating illicit financial activities and protecting citizens from financial crimes.

These suspicious transfers can be frozen for a period of up to 10 days while Rosfinmonitoring investigates the nature of the transaction. This intervention is intended to provide authorities with the time needed to determine whether the transfer is legitimate or connected to illegal schemes.

Rosfinmonitoring specifically aims to combat the use of “droppers,” individuals who facilitate fraudulent transactions by allowing their accounts to be used to move illicit funds. This action is part of a broader effort to crack down on financial fraud and safeguard the integrity of the financial system.

In a related development, the State Duma is considering stricter regulations regarding the issuance of bank cards to teenagers as part of the ongoing fight against “droppers.” The proposed legislation seeks to address concerns that current regulations make it too easy for minors to obtain bank cards, which are then exploited by fraudsters.

State Duma Speaker Vyacheslav Volodin noted a significant increase in the issuance of bank cards to teenagers, with an annual growth rate of 20-25%. Fraudsters often target minors, persuading them to apply for debit cards and subsequently using these cards for illicit transfers.