The procedure for the blocking of fraudulent financial services websites in Russia is set to be accelerated, the Central Bank of Russia said today.
Scam websites will be blocked based on orders issued by the central bank within days. This is made possible thanks to a law signed by the President of the Russian Federation. Before the legal changes, the procedure took months.
Under the new mechanism, the central bank will give lists including the fraudulent websites to the General Prosecutor’s Office, which, in turn, has the power to issue directions for the blocking of such websites to the Communications Regulator.
Such an algorithm is set to allow to quickly prevent access to websites of financial pyramids and other websites run by fraudulent financial firms.
The central bank explains that online fraudsters got very active during the COVID-19 pandemic, as consumers made use of various services in online form. During the first quarter of 2021, the central bank detected 124 illegal Forex dealers, 85 financial pyramids and 144 illegal creditors. Overall, 45% of the illegal participants in the financial market in Russia act online.
The new law for websites blocking will come into effect on December 1, 2021.
Let’s recall that, in June 2021, the Central Bank of Russia published a “black list” including the names of more than 1,800 firms whose activities in Russia are illegal.
The list features companies such as illegal creditors and financial pyramids, as well as online trading firms that do not have the necessary licenses but nevertheless target Russian investors. There are hundreds of illegal brokerages in the list, including Forex firms.
One of the names mentioned in the list is Alpari Limited. Grand Capital is also enlisted. Foreign FX firms that have gotten into trouble abroad, such as USGFX, are also present in the blacklist.