Russia Cracks Down on Financial Fraud with Public List of Illegal Companies

Protecting Consumers’ Interests

The Bank of Russia has published a list of over 1,800 organizations and internet projects suspected of engaging in fraudulent financial activities. This move aims to protect consumers’ interests by warning them of the risks associated with such companies.

Identifying Illegal Financial Market Participants

According to the regulator, it identifies illegal financial market participants using its in-house monitoring system and applications from individuals and organizations. To counter illegal activity, the Bank of Russia:

• Blocks websites of such companies
• Interacts with law enforcement agencies and other authorized bodies
• Works with foreign regulators to apply other measures

The List of Illegal Companies

The list includes companies that have been identified since 2020 and will be regularly updated with new information. Each entry on the list provides the company’s name, nature of illegal activity, website address, and other details, including the date when the data was uploaded.

Urging Caution

The Bank of Russia is urging citizens to be cautious and always check the legality of financial services before concluding an agreement. “Counteracting illegal companies is aimed at protecting the rights of citizens, financial consumers, and maintaining fair competition in the market,” said Sergey Shvetsov, First Deputy Governor of the Bank of Russia. “We hope that the disclosure of the names of such organizations will help consumers avoid the risk of being deceived and cleanse the market of illegal players as soon as possible.”

Reporting Suspicious Activities

The regulator is calling on citizens to report any suspicious financial activities or encounters with illegal companies to law enforcement agencies and the Bank of Russia, which will help to counter these organizations more efficiently and warn people at an early stage.