Russian c-bank uses big data tech to detect financial pyramids

Maria Nikolova

The solution behaves like a regular person looking where and how to invest funds.

The Central Bank of Russia is using big data technology to detect financial pyramids. This was announced an interview of Valery Lyakh, Head of the Bank of Russia’s Department for Countering Malpractice, with Russian information agency PRIME.

Mr Lyakh explains that a special search model was launched in the second half of last year. The solution behaves like a regular person looking where and how to invest funds. Firms that are chasing new clients typically react to the activities of the solution. The robot is capable of working with simple enquiries and interactive forms of information exchange.

Once the bot detects a firm that shows interest, the Central Bank starts checking whether the firm is operating legally or not.

Quite often, a single beneficiary is behind several illicit entities. This is easily determined by the bot as it processes large volumes of data and finds out where the information and advertising come from and where the funds are directed.

Mr Lyakh also explained that in 2018, the Central Bank identified 223 websites of illegal FX firms. The bulk of materials associated with these findings has been sent to the prosecutors.

In December last year, the Central Bank announced it was revoking the Forex dealer licenses of five companies, including Alpari Forex, Forex Club and TeleTrade. The regulator said the licenses were taken away due to violations of the Russian law by the brokers. The companies had time until January 27, 2019, to return all funds to their clients.

The activities of these firms were focused on aggressive advertising and transferring of Russian clients to foreign jurisdictions. This explanation has been provided by Larisa Selyutina, Head of the Securities Market and Commodity Market Department.

“All companies whose licenses have been revoked are ‘subsidiaries’ of large foreign forex dealers with recognizable brands, operating mainly in foreign forex markets. The decision to revoke is connected with the regulator’s deep concern for enormous risks for Russian citizens from the companies’ activities,” Selyutina was quoted by TASS as saying.

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