Russia tightens financial oversight to fight “illegal business activities”

Russia’s authorities continue to tighten their grip on the country’s financial conduits to crack down on illegality, including unauthorized gambling.

On Wednesday, Russian media outlet Kommersant reported that Daniel Yegorov, deputy head of Russia’s Federal Tax Service (FNS), had asked the Ministry of Finance for the authority to compel banks to provide information on customer accounts, even if those accounts aren’t subject to a tax probe, in an effort to “identify and suppress illegal business activities.”

The Ministry has yet to respond publicly to the FNS request, which would dramatically expand the taxman’s capacity to monitor the average Russian’s financial dealings. As things currently stand, the FNS can only request banking information if it detects irregularities in an individual’s tax returns, and access is limited to verifying the suspect info.

Russian legislators have also prepared amendments to existing law that would require banks to submit information to Rosfinmonitoring (Federal Financial Monitoring Service) regarding all withdrawals of funds from Russian ATMs using foreign bank cards.