Banks will strengthen control over operations with budget funds

Banks will strengthen control over transactions with budget funds that show signs of being cashed out, such as grants or state transfers. The Central Bank will require more careful monitoring of such operations — this follows from the updated draft regulation of the regulator 375-P (Izvestia has it). If a financial organization recognizes a transfer as suspicious, in the future, questionable transactions of this person may be blocked and additionally checked.

Family prisoners: banks require you to come to the office with your relatives to unfreeze the account.

The new rules apply to those who are suspected of transferring money to fraudsters.

"The innovations may also affect legal entities and individual entrepreneurs," said Alexander Naumov, Deputy head of the National Council of the Financial Market (NSFM).

There are many schemes for cashing out state funds that medical and educational organizations receive to support certain categories of employees, said Alexander Safonov, professor at the Financial University under the Government of the Russian Federation. As a result of such frauds, money usually does not fall into the hands of employees, but into the hands of the administration.

Similar practices are used in the execution of government orders, said Alexander Safonov. Many corruption schemes involve cashing out and using targeted funds for other purposes — for this they can be withdrawn through shell companies.

Organizations also resell goods purchased with grants or tender funds, as well as make purchases from subsidiaries and contractual suppliers. In this case, government funds simply flow to third-party companies and are withdrawn, experts say.