Russia proposes restricting usage of banking cards issued to non-residents
In the heart of Russia, discussions are brewing about curbing bank card usage for foreigners to tackle shady activities often referred to as "dropping". According to the deputy head of Russia's Financial Monitoring Service, German Neglyad, this crackdown aims to counteract "droppers" - non-residents recruited by crooks or lured by cash to misuse their bank cards for money laundering.
Neglyad's team is collaborating with the Central Bank to implement these changes quicker than usual, targeting a one-year timeline rather than the typical three-year period. He highlighted that this problem isn't confined to Russian borders.
Remember when the Financial Market Committee of the State Duma proposed limiting the number of bank cards issued to one person? Their mission? To stamp out "droppers." These "droppers" are individuals duped by criminals or tempted by rewards to issue and relinquish their bank cards to fraudsters for laundering ill-gotten gains. At present, there's no legal cap on the number of cards one person can possess; banks decide this policy on an individual basis.
Moscow, Russia
Zoya Oskolkova
© 2025, RIA "Novyi Den"
On a broader scale, Russia has beefed up its financial security against irregularities, including "dropper" activities. These measures involve strategies to limit bank card use and fund transfers for non-residents:
- Locks on Fund Transfers Abroad:
- Thanks to the Bank of Russia, transfers of funds abroad by non-residents from "unfriendly" nations, who aren't employed in Russia, are blocked until September 30, 2025. Even though employed non-residents can transfer funds, they're limited to their salary equivalent[1].
- Tighter Scrutiny for Large Transfers:
- Beginning May 30, 2025, all money transfers exceeding 100,000 rubles will require full identification to combat money laundering and terrorism financing[4].
- Nixing Foreign Messengers in Banks:
- A ban on using foreign instant messengers by bank employees will come into effect from June 1, 2025, combating fraud within banks through increased security measures[2].
That said, specific regulations aimed at curbing "dropper" activities by limiting bank card usage for non-residents isn't explicitly defined in the search results. Existing measures primarily focus on broader financial restrictions and anti-money laundering efforts. However, these measures could indirectly impact "dropper" activities by fortifying financial security and enhancing oversight.
- The tightening of financial regulations in Russia includes a potential restriction on bank card usage for non-residents, aiming to combat "dropper" activities.
- In the realm of business and policy-and-legislation, Moscow is reportedly considering policy changes to curb "dropper" activities, focusing on foreigners' bank card usage.
- As part of general news from Russia, discussions are ongoing about restricting bank card usage for non-residents to address "dropper" issues, a concern not only within the nation but also in the broader context of finance and politics.
