Russia’s AML/CTF supervisors
The primary AML/CTF supervisory body in Russia is the Federal Financial Monitoring Service (FFMS). Their job is to gather information, monitor transactions of controlled entities, and conduct financial intelligence investigations in compliance with AML/CTF law.
The following other authorities, as part of their scope, keep an eye on compliance with the AML/CTF law in Russia.
The CBR regulates the operations of credit institutions and non-credit financial institutions as one of the major players in the Russian AML/CTF system. Reducing the risk of money laundering and terrorism financing in the financial sector is one of the CBR's most significant duties.
How do you comply with AML/CTF regulations in Russia?
In Russian AML/CTF law, transactions involving money and other assets are regulated through a short list of legal entities. Financial institutions such as banks and non-banking credit institutions, seasoned stock market participants, insurance and leasing firms, postal services, and other non-credit institutions involved in money transfer are included in this list.
The AML/CTF laws of Russia require reporting entities to identify their customers and to have systems in place to spot transactions that may be related to financial crimes.
In addition to identifying the client as a reporting entity, you have a responsibility to keep an eye out for suspicious activity in your clients' transactions, take action to freeze suspicious assets when necessary, and create and implement internal policies and processes.
Based on the FFMS's suggestions for the creation of criteria for the discovery and determination of odd transactions, you must also establish and implement your own internal risk assessment programmes in accordance with the AML legislation. You must put the AML and internal control processes into place to guarantee that your business is compliant. Additionally, it is necessary that AML Compliance Officers are hired, and continuous employee training sessions are held.
Several CBR laws provide parameters for credit institutions' internal control and client identification operations.
What are my AML/CTF reporting obligations?
The Federal Service for Financial Monitoring must receive reports of suspicious transactions from AML Compliance Officers. Financial institutions that must comply with AML regulations are required to report customer transactions of at least 600,000 RUB (8,000 EUR) in cash or other forms of payment to the financial intelligence unit. Organisations must also identify politically exposed individuals (PEPs) and notify supervisory units of any suspicious financial activity.
