In a development that marks a new chapter in Russia’s approach to financial crime, officials announced criteria for identifying illegal economic activities without direct input from Central Bank experts. This update was reported by TASS, citing the press center of the Ministry of Internal Affairs of Russia.
The Ministry of Internal Affairs, working in tandem with the Bank of Russia, has devised a specialized methodology intended for expert analysis of schemes that seek to boost the effectiveness of uncovering financial pyramids. The current efforts aim to converge a unified approach for detecting and investigating crimes in a broad spectrum of economic entities, extending beyond traditional internet projects and cryptocurrency platforms to encompass a wider array of actors and arrangements. This is part of a broader push to standardize investigative tools and ensure consistent application across different sectors of the economy. (TASS)
The ministry noted that the Bank of Russia has highly valued the outcomes of this study, underscoring the collaboration between executive agencies and the central bank as a strength of the initiative. The joint work reflects a shared assessment of how illicit schemes operate and how early indicators can be recognized to prevent widespread harm. (TASS)
Statistics for January through September 2023 reveal a record level of activity by illegal projects categorized as financial pyramids, with 2,176 identified cases. About 98 percent of these pyramids were small, anonymous, and designed to lure participants with a limited initial stake. Most of these schemes spread via social networks or messaging apps such as Telegram, exploiting the ease of online communication to recruit new members. The central bank explained that typical pyramids have a short lifespan, reward the early entrants, and collapse once new participants dry up, leaving later buyers with no returns. (Bank of Russia)
Earlier decisions in Russia led to a ban on financial pyramids, signaling a government-wide stance against these practices and a commitment to stronger enforcement. The evolving framework aims to provide clearer criteria for identifying, investigating, and ultimately curbing such schemes, while helping financial institutions and law enforcement coordinate their responses more effectively. (Ministry of Internal Affairs)