Russian banks have been actively blocking accounts of small and medium-size enterprises (SMEs) lately as a reaction to the tough banking sector environment, Vedomosti reported on October 18.

According to the report, since the beginning of 2017, the number of entrepreneurs facing problems with their bank has increased by 25%, while 10% of Alfa Bank clients in the SME segment have seen their accounts blocked, compared with 6% in 2014.

A study by the service Potok, which is part of Alfa Group, revealed that the highest number of account blocking was in the field of healthcare, at 12.5%.

However, the reasons for blocking SMEs' accounts run the gamut. A company involved in metal processing was suspected for the illegal sales of scrap metal, a segment known for its unreported cash transactions.

In another case, the owner of a wholesale company saw the company's account blocked after a $200,000 payment was made to a transportation company.

While Russian lenders are keen to crack down on suspicious transactions, telling one from a totally legitimate deal is hard, and SMEs turn out to fall prey to ambiguity in the existing legislation.

If a SME's account has been blocked, getting it reactivated takes time, and the procedure stipulates that auditors from the bank be sent to investigate, who may request confidential information. In addition, if a company's account has been blocked at one bank, the company is viewed as "suspicious" and it won't be allowed to open an account with another lender.

The Central Bank of Russia (CBR) has guidelines for hundreds of suspicious types of transactions, but they don't take into account the specifics of separate industries, Vedomosti reported, adding that, for instance, it is normal for wholesale companies to have large transactions and small balances, while for any other type of company a situation like that would be suspicious.