President Signs Law for Automatic Data Exchange Between Bank of Russia and Ministry of Internal Affairs

In a significant move to enhance cooperation between financial institutions and law enforcement agencies in Russia, President Vladimir Putin has signed a new law enabling automatic data exchange between the Bank of Russia and the Ministry of Internal Affairs. Here’s what you need to know:

Aimed at Combating Banking Fraud

The legislation, which is expected to take effect on October 21, 2023, is designed to expedite money transfer fraud investigations and has the following key features:

Direct link between the Ministry of Internal Affairs and the Financial Sector Computer Emergency Response Team (FinCERT) of the Bank of Russia
Automated data exchange between financial institutions and law enforcement agencies
Adherence to strict bank secrecy standards
Sharing of information about criminal activities between the two parties

Streamlining the Investigation Process

Currently, investigating money transfer fraud cases involves significant time spent on data requests and communication between law enforcement and financial institutions, leading to delays and challenges. The new law aims to eliminate this issue by establishing a direct link between FinCERT and the Ministry of Internal Affairs.

FinCERT maintains a database of transactions carried out without consumer consent, offering quick access to law enforcement agencies to identify fraudulent transfers and their recipients. With this information at their disposal, investigators can act swiftly to apprehend the perpetrators and recover stolen funds.

Complying with Bank Secrecy Standards

Data exchanges will adhere to strict bank secrecy standards. In return, the Ministry of Internal Affairs will transmit information about criminal activities to the FinCERT database. Banks can then utilize this information to prevent fraudulent transfers and safeguard their business processes.

Implementation Details

Both the Bank of Russia and the Ministry of Internal Affairs are expected to sign a bilateral agreement before the law’s implementation. The agreement is expected to include details on information types, transmission procedures, timeframes, and formats. Additionally, both parties must integrate their information systems accordingly to ensure seamless data exchange.

Reducing Investigation Time and Improving Collaboration

By automating the data exchange process, the Russian authorities expect to reduce the time it takes to investigate money transfer fraud cases and enhance collaboration between financial institutions and law enforcement agencies. As a result, perpetrators are likely to face swift and effective action, making it more challenging for them to engage in fraudulent activities.

Russian Money

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