Dubious transactions in banking sector decline further in 2018

Overseas money transfers shrank by 24% compared with 2017, while cash-out transactions in the banking sector almost halved. These are data cited by the Bank of Russia in its assessment of dubious transaction volume and structure in 2018.

The most tangible reduction was registered in dubious cash withdrawals by legal entities and individuals, and overseas money transfers with the use of warrants.

In 2018, fund withdrawals from retail accounts and payment cards prevailed in the overall structure of cash-out transactions (57%), whereas advance payments (32%) and service transactions, mostly container shipments (23%), accounted for the bulk of overseas money transfers.

Though cash-out transactions in the banking sector showed a considerable decline in 2018, they registered an increase in the non-banking sector. This translated into the rise of high-risk transit operations of cashless compensation for cash receipts ‘sold’ by third parties to trade companies and distributors.

This assessment is based on the information from the Bank of Russia Financial Monitoring and Foreign Exchange Control Department about identified dubious transactions carried out by credit institutions and their customers.