Banking institutions restrict access to funds for extended periods for numerous Russians
Mass Unannounced Bank Account Freezes Cause Financial Hardship for Thousands of Russians
A wave of unannounced bank account freezes has swept across Russia, leaving ordinary citizens and businesses struggling to access their funds. These freezes, primarily stemming from new anti-fraud regulations introduced by the Central Bank of Russia in May 2025, have caused significant financial hardships and public discontent.
The regulations empower banks to block cards and restrict transfers when suspicious transactions are detected. Banks rely on a centralized national database of suspicious activity, which imposes a monthly transfer cap of 100,000 rubles (about $1,280) on flagged customers.
The reasons for these freezes include suspicion of fraud or risky financial behavior, incomplete or delayed customer responses to bank inquiries about certain transactions, and compliance with anti-money laundering laws, particularly involving cross-border payments.
The impact on ordinary Russian citizens and businesses has been significant. Around one in three Russians reported blocked transfers or frozen cards since the new rules were implemented, with some accounts frozen for periods ranging from 1.5 months up to six months in extreme cases. Customers face difficulties in accessing their funds, leading to financial hardships and delays in payments.
Public sentiment is mostly negative, with many fearing that ordinary consumers bear the brunt, while fraudsters remain largely unaffected. The increased restrictions have affected international trade and payment processing times, especially related to Russian companies dealing with foreign banks wary of sanctions.
Banks are demanding proof of the origin of every ruble, potentially requesting documents that ordinary citizens may not have. Financial institutions are implementing strict measures, freezing accounts for up to 180 days. MTS Money and Gazprombank are among the banks mentioned in cases of account freezes.
Regulators' measures are causing thousands of Russians to remain without salaries, pensions, and savings, facing significant financial hardships. Affected individuals have stated that their accounts were frozen for 1.5 to 3 months. Transferring money to a neighbor for utilities or paying for small purchases should not result in months-long loss of access to one's own money.
The Central Bank has clarified that freezing an account means temporarily suspending remote services and refusing to process a specific transaction if there's even a slight suspicion of money laundering or terrorism financing. However, the process of providing the necessary documentation and explanations to lift account freezes can be prolonged if clients fail to comply promptly.
The regulatory response involves the Central Bank’s ongoing monitoring and enforcement of anti-fraud and anti-money laundering measures. Some foreign financial institutions and regional banks have implemented even stricter controls to align with sanctions and regulatory demands, tightening operations connected to Russia.
In December 2023, a record increase of 30% in complaints about unjustified account freezes was reported, reaching 2800 cases. Financial ombudsman Anastasia Gueseva has emphasized that the fight against crime should not affect law-abiding citizens. The situation indicates a growing issue affecting a substantial number of citizens.
As the situation continues to unfold, it is essential for regulators and financial institutions to find a balance between ensuring financial security and minimizing the inconvenience and hardship caused to law-abiding citizens.
Financial institutions like MTS Money and Gazprombank are enforcing strict measures, freezing personal and business accounts for prolonged periods due to new anti-fraud regulations, causing significant financial hardships among thousands of ordinary Russians. These strict controls, primarily in the realm of personal finance, have led to difficulties in accessing funds, delayed payments, and hardships for those relying on their savings, salaries, or pensions.