Money Laundering Schemes in Russian Federation Pose Serious Threat to Economy, National Security
The Russian Federation is facing a significant economic crime - money laundering - which is linked to corruption, tax evasion, and other criminal activities. This illegal integration of funds into the economy undermines financial and social relationships, posing a threat to national security.
Global Concern
According to experts, money laundering can also be used to finance terrorism and the proliferation of weapons of mass destruction, making it a global concern. International efforts have been underway to combat these issues through the development of AML/ CFT/CPF standards by organizations like the Financial Action Task Force (FATF).
Russian Anti-Money Laundering System
In Russia, the fundamental provisions for combating money laundering are established by Federal Law No. 115-FZ, dated August 7, 2001. The law sets out the obligations of various entities, including federal executive bodies, banks, non-bank financial institutions, and enterprises.
The Russian AML/CFT system is a complex network that includes government bodies, regulatory agencies, and private sector entities. As one of the key participants in this system, the Bank of Russia regulates the activities of bank and non-bank financial institutions and monitors their compliance with statutory requirements.
Mitigating Money Laundering Risk
To mitigate money laundering risk, banks and non-bank financial institutions are required to implement a range of measures, including:
- Identifying customers
- Monitoring transactions
- Reporting suspicious activity to the Rosfinmonitoring (Russian Financial Intelligence Unit)
Know Your Customer Platform (KYC Platform)
The Bank of Russia has also launched the Know Your Customer Platform (KYC Platform) to provide information about potential and existing clients’ involvement in suspicious transactions.
Currency Control
Additionally, the Bank is responsible for currency control, which aims to ensure the stability of the Russian Federation’s currency and foreign exchange market.
Prevention Efforts
In recent years, the Bank of Russia has taken steps to prevent unscrupulous economic agents from using the credit and financial sector for illegal purposes. The comprehensive application of AML/ CFT/CPF tools has led to a steady decrease in dubious transactions.
By combating money laundering, the Russian Federation is working to protect its economy and national security, while also contributing to international efforts to combat global crime.