13:58, 30 September 2021 Page views 911 views

Russia to impose mandatory biometrics submission on foreigners opening bank accounts

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Anatoly Aksakov, Head of the State Duma Committee on Financial Market, has proposed obligatory biometric data collection for foreign citizens opening bank accounts.


According to Aksakov, this initiative will help to fight against unauthorized debiting clients’ accounts mostly performed by migrants.


“There are matters that need to be settled, and that's all about unauthorized debiting clients' accounts,” Aksakov said speaking at the Moscow Financial Forum.


“A lot of migrants are involved in such activities. They come here in brigades, open accounts, cash out the money withdrawn illegally. It is proposed to discuss the possibility of mandatory collection of biometric data when opening bank accounts for foreigners in Russia in order to cut off a large part of fraudsters operating in our country,” he said.


According to the head of the Duma committee, migrants have organized a regular business to cash out funds illegally withdrawn from the accounts of Russia citizens: “A deported person takes his brother's passport – as they look very much alike, comes into the country and then continues working. A regular business has developed in this area, so we have the right to and should collect biometric data, register them and track the travels of migrant workers, foreigners, as well as the movement of their finance across our country.”


Aksakov believes that it is also necessary to allow funds to be blocked in the accounts of the beneficiary bank whereto the unauthorized money transfer was made. In addition, it is necessary to entitle the beneficiary bank to inform about the owner of the account whereto the money was transferred, so that people, whose accounts were debited, could apply to the respective law enforcement agencies.


“Practice shows, however, that money is taken away or forwarded to another bank within a mere hour after debiting the beneficiary bank account or cash withdrawal at ATM. Fraudsters are quick.  It is crucial to find mechanisms to block funds in beneficiary banks,” the deputy said, adding that the central bank should be entitled to keep a register of “droppers” – individuals whose cards are used by hackers to withdraw stolen funds.


“It is proposed that the central bank or another institution should keep a registry of persons suspected as droppers, that is, those who are intermediaries – holders of accounts used to transit these funds to those who further cash out the funds either through a bank or an ATM,” said the deputy.