Financial Crime World

Russian Federation’s Efforts to Combat Money Laundering Techniques

The Russian Federation is committed to combating money laundering techniques and preventing financial crimes through its Financial Monitoring and Currency Control Department (FMC). In this article, we will explore the department’s objectives, measures, and efforts to mitigate the risk of dubious transactions.

Key Objectives

The FMC’s primary goal is to prevent supervised institutions from involvement in suspicious activities. To achieve this, it employs proactive and risk-based advisory supervision, providing prompt notifications about potential risks and high-quality consulting assistance to correct internal anti-money laundering (AML) procedures.

Measures to Mitigate Risk

  • Proactive and risk-based advisory supervision
  • Prompt notifications about potential risks
  • High-quality consulting assistance to correct internal AML procedures
  • Account-based money laundering and terrorism financing risks control measures

Control Measures

The FMC has implemented a range of control measures to ensure compliance with AML/CFT regulations, including:

  • Supervisory response measures in cases where violations are detected
  • Remote supervision using developed methods and tools
  • Participation in inspections
  • Drafting laws and regulations related to AML/CFT

Information Support

The FMC provides information support to supervised institutions, including:

  • Letters summarizing the practice of Russian law application and international requirements
  • Methodological support for reporting on transactions and processing submitted reports

Coordination with Public Authorities

The FMC maintains communication with various public authorities, including:

  • Ministry of Finance
  • Ministry of Economic Development
  • Federal Financial Monitoring Service
  • International Monetary Fund (IMF)
  • World Bank
  • FATF (Financial Action Task Force)

International Cooperation

Representatives from the FMC are active participants in international forums, such as:

  • FATF
  • MONEYVAL (Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism)

The department regularly studies international experience to ensure that Russian AML/CFT regulations align with global standards.

Conclusion

The efforts of the Financial Monitoring and Currency Control Department aim to strengthen Russia’s anti-money laundering framework and combat money laundering techniques effectively. Through its proactive and risk-based advisory supervision, control measures, information support, coordination with public authorities, and international cooperation, the department is committed to preventing financial crimes and ensuring the integrity of the Russian financial system.