Financial Crime World

Moscow Exchange’s Commitment to Compliance: Building Trust and Mitigating Risks in the Russian Financial Sector

In the heart of Russia’s financial hub, Moscow Exchange stands as a pivotal player, continuously navigating the dynamic and complex landscape of modern finance. As a high-tech company and a significant piece of Russia’s financial market infrastructure, the Exchange faces various challenges that set the stage for future developments in the financial spheres of individuals and organizations.

Fostering Trust and Business Ethics

Moscow Exchange’s commitment to compliance is dedicated to fostering a culture of trust amongst its stakeholders. Aligned with regulatory demands and risk mitigation across various domains, the Exchange’s stringent compliance practices cover:

  1. Licensing requirements and Internal Control Service
  2. Economic restrictions
  3. Conflicts of interest
  4. Anti-bribery and corruption
  5. Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Non-Proliferation of Weapons of Mass Destruction (WMD)
  6. Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS)
  7. Insider trading and market manipulation

Anti-corruption

  • Zero-tolerance policy: Moscow Exchange, a signatory to the Anti-Corruption Charter of Russian Business, upholds a zero-tolerance policy towards corruption in all its forms.
  • Compliance Hotline: Stakeholders are encouraged to report any suspicion of corruption-related risks or non-compliance with Moscow Exchange’s anti-corruption policy using the dedicated Compliance Hotline.

Professional Ethics and Fair Practices

  • Internal reporting: For internal reporting, Moscow Exchange offers a separate whistleblowing channel for employees, with anonymity guaranteed.
  • Insider trading and market manipulation compliance: Moscow Exchange employs robust measures to prevent, detect, and suppress insider trading and market manipulation.

Compliance with Regulatory Standards

  • Financial monitoring: Moscow Exchange’s internal control system ensures strict adherence to AML/CFT/Non-proliferation of WMD regulations.
  • Economic restrictions compliance: Moscow Exchange rigorously implements KYC processes to preserve compliance with applicable sanctions legislation.
  • FATCA/CRS compliance: Registered as a Participating Financial Institution, Moscow Exchange follows international standards aimed at fostering tax transparency and preventing global tax evasion.

Market Compliance Initiatives

Seeking to promote superior compliance practices across the market landscape, Moscow Exchange:

  • Collaborative initiatives: In 2021, Moscow Exchange, in collaboration with the Bank of Russia, self-regulatory organizations, Moscow Exchange Group, and trading and clearing members, created a Code of Conduct for market participants.

For more information on Moscow Exchange’s compliance technology, watch the recording of the conference “Compliance: Key Trends 2021” (Session 4).