Russia’s invasion of Ukraine prompted a rapid and widespread international response from many organizations in the payments industry.
Over the weekend alone, four of the biggest US payment companies – Visa, Mastercard, American Express and PayPal – announced bans in Russia. The actions are partly related to Western sanctions against Russian banks and designed to restrict Russian internal trade and isolate Russian banks.
“The increase in global sanctions against Russia is another illustration of the expanding and complex landscape that is placing immense pressure on the private sector,” said Charles Subrt, director of fraud and anti-money laundering practice. money at Aite-Novarica in Boston. “Expanding markets, faster payments and higher transaction volume increase the risk of sanctions in the digital age.”
These measures are designed to create economic and political pressure on Vladimir Putin’s government. There will also likely be a response from Russia, and additional compliance risks for Western payment companies as anti-money laundering and “know your customer” verification become more complicated, according to Subrt.
“Tracking changes and applying them efficiently and quickly can be a difficult task,” Subrt said.
These organizations are involved in disrupting the Russian payments market.