Russian Central Bank to apply supervisory measures to banks that inadequately report fraud - Nabiullina

YEKATERINBURG. Feb 14 (Interfax) - The Russian Central Bank is warning banks that inadequately report fraud that they could be subject to supervisory measures.

"We are now going to use our rather serious supervisory powers on those who do a poor job reporting this," Bank of Russia Chairman Elvira Nabiullina said at the "Cybersecurity in Finance" forum on Wednesday in Yekaterinburg.

"The obligation [to provide high-quality data on fraud] has already been established in a number of cases; it just needs to be observed. We are now recording violations at banks, and conducting inspections; this year we intend to establish some serious order, because otherwise, it is impossible to move forward," Nabiullina said.

It is necessary to establish an exchange of data about droppers who cash out stolen funds from fraudulent activity, she said.

"What we receive is information about droppers that is incorrect, and which cannot be used by other banks. And it is here that an exchange of information, high-quality information, can also help," Nabiullina said.

She added that FinCERT could become a platform for exchanging this data. The head of the Central Bank proposed discussing the difficulties that can arise in this case. "We have a lot of problems, and the data is almost impossible to use," Nabiullina said.

She added that in general there's a need to create an atmosphere of intolerance towards droppers.

Bankers said that it is necessary to increase liability for this activity, but disagreed on whether criminal liability is necessary or administrative liability is sufficient.