Cards and accounts blocks in January: in search of hype, or Fear hath a hundred eyes?

Not long ago, media reported that banks had blocked millions of individuals’ cards and accounts since the beginning of the year, with hundreds of complaints about unjustified card and account blockings appearing on financial forums. Some experts have already stated that the mass blocking stems from the dramatic widening of the range of criteria for suspicious transactions. On January 1, Bank of Russia’s order came into effect, doubling the list of suspicious transaction indicators under Federal Law No. 161-FZ, to 12 criteria. We propose examining the actual changes introduced by the new BoR order and analyzing their impact on the blockings. We invited independent expert Nikolai Pyatiizbyantsev to assess the situation.

Not long ago, media reported that banks had blocked millions of individuals’ cards and accounts since the beginning of the year, with hundreds of complaints about unjustified card and account blockings appearing on financial forums. Some experts have already stated that the mass blocking stems from the dramatic widening of the range of criteria for suspicious transactions. On January 1, Bank of Russia’s order came into effect, doubling the list of suspicious transaction indicators under Federal Law No. 161-FZ, to 12 criteria. We propose examining the actual changes introduced by the new BoR order and analyzing their impact on the blockings. We invited independent expert Nikolai Pyatiizbyantsev to assess the situation.