Russia's banks trial remote identity checks via video calls

Russia tests video ID checks to replace in-person banking verification

Video Identification Could Become a Key Tool in Fighting Bank Fraud

Video identification of bank customers may prove more reliable than in-person verification, according to market participants surveyed by Expert. They argue that video biometrics are nearly impossible to spoof, making them a powerful weapon against fraud. On April 14, the Central Bank of Russia announced it was developing a pilot legal framework (known as an experimental legal regime, or ELR) for video identification in banks—though not everyone supports the initiative.

The Bank of Russia is drafting regulations for an experimental legal regime to govern video identification in banking, with the proposal currently undergoing interagency approval, Sergei Klyuchevsky, deputy head of the Central Bank's Financial Monitoring and Currency Control Service, said at a conference hosted by the Association of Russian Banks (ARB) on April 14.

In April 2025, President Vladimir Putin signed a law allowing Russian banks to remotely verify customers' identities when opening accounts under the ELR. Previously, anti-money laundering and counter-terrorism financing legislation (Federal Law No. 115-FZ) had required individuals or their representatives to appear in person to open a bank account.

Klyuchevsky noted that the new law paves the way for the experimental regime: "You may wonder where this legal framework actually is. I can assure you that the work is underway. The Bank of Russia is actively developing the relevant regulatory act." He acknowledged challenges in integrating and implementing the new processes, particularly the need to coordinate with multiple government agencies—some of which, he admitted, remain skeptical of the initiative.

Deputy Director of Rosfinmonitoring (Russia's financial intelligence unit) German Neglyad also spoke at the ARB conference, emphasizing that the law had been drafted by his agency and initially did not envision full-scale remote customer identification due to concerns over fraud risks and the potential use of deepfake technology in account openings. According to Neglyad, Rosfinmonitoring and the Central Bank concluded that a limited pilot program was necessary to assess risks with a small group of users and evaluate which technological solutions could reliably verify identities. "Only then can we make an informed decision on whether to proceed or whether the risks still outweigh the benefits," he said.

Banks, for their part, are eager to join the video identification pilot. The main point of contention, however, is the requirement to transfer customers' biometric data, explained Andrei Yemelin, chairman of the National Financial Market Council. He noted that current interagency discussions are taking place without the direct involvement of banks.

He emphasized that video identification is only required to confirm in-person attendance, which is mandatory when opening a bank account for new clients, while all other transactions can be conducted online under current legislation.

The primary goal of the regulatory sandbox (RS) is to test the project's strengths, weaknesses, and risks using real-world data. The proposed RS includes multiple versions, nearly all of which impose certain restrictions on customer service, explained Ivan Bakhmat, Director of Digital Business Development at OTP Bank. He noted that the bank he represents is included in the pilot list for the remote video identification project.

Remote account opening and full online access to all banking products enhance both customer convenience and competition in the financial services market. However, he stressed that customer security and legal compliance during identification remain the top priorities.

The project is particularly relevant for residents of remote regions. For example, after similar initiatives were implemented in Kazakhstan, the number of new bank clients increased significantly, Bakhmat said. In his view, the project is unlikely to gain widespread adoption in Russia in the near future but will likely become an integral part of banking services within a few years.

Video identification will also serve as a fraud prevention measure. Video biometrics is a highly complex process that analyzes gestures, facial expressions, speech, and actions—elements that are nearly impossible to forge in real time, Bakhmat believes. "In this regard, we need not fear deepfakes, which, while now produced at a very high level, will never become a method for deceiving the video identification process."

Victor Dostov, Chairman of the Board of the Electronic Money Association (EMA), also argues that video identification is often more reliable than in-person verification due to its technological sophistication. He noted that Russia has long discussed the possibility of video identification for clients, with the EMA drafting conceptual documents for it nearly a decade ago. Essentially, video identification transfers the standard bank-client interaction process online—making it simple, secure, flexible, and well-aligned with conventional banking procedures.

This practice has been successfully used for years in the EU, Central Asia, and other regions without significant issues, actively incorporating facial recognition, anti-deepfake modules, and integration with government databases, Dostov told Expert. "Unfortunately, in Russia, the path has been complicated and prolonged for subjective reasons. Ideally, video identification should be enshrined in law and available to all banks. But even within the RS framework—with limited functionality and a restricted client base—this is a major breakthrough," he concluded. "We hope the service will soon become widely accessible."