Russian banks face huge fines after surge in bailiff data requests
Banks in Russia were hit with an unprecedented wave of information requests from the Federal Bailiff Service, raising the risk of massive penalties.
The National Financial Market Council reported that between September 18 and 21, the Federal Bailiff Service generated an extraordinary number of debtor information requests for Russian banks, at least ten times the usual level and up to thirty times for some institutions. A regional bank recorded 12.8 million requests on September 19, matching its monthly average. According to the Association of Banks of Russia, over 90 % of the queries concerned non-customers.
Analysts, including Mikhail Bryukhanov, suspect that lost confirmations triggered the system to resend the entire backlog. Banks must answer each request within three days or risk fines of 50,000-100,000 rubles, which could threaten the stability of smaller banks. The council has asked the Central Bank to investigate, and the Central Bank has acknowledged the inquiry and will review it under standard procedures.
Why it matters
The flood of bailiff requests could impose crippling fines on Russian banks, endangering financial stability.
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