02.09.2016, 16:56
Bank of Russia and Rosfinmonitoring to Launch Information Exchange with Banks and NFOs
OREANDA-NEWS. Banks and non-credit financial organisations (NFOs) will get information from the regulator on the cases when their clients were denied operations and conclusion or termination of bank account agreements (bank deposit agreements). This will help reduce the risk of market participants’ involvement in operations connected with the legalisation of criminally obtained incomes and the financing of terrorism.
Bank of Russia Regulation No. 550-P, dated 20 July 2016, which covers the information provision procedure is published in the Bank of Russia Bulletin today. The information exchange between the regulator and supervised organisations will be carried out electronically and will come into effect in 2017.
One needs to consider that the information from the Bank of Russia received within the said information exchange framework is not an independent and absolute reason for a credit or non-credit financial organisation to take a no-go decision. The Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ obliges market participants to take it into account when determining the risk of client’s involvement in such operations.
The law also envisages the regulator’s duty to provide the supervised with no-go data and mechanisms for multilateral exchange of such information. Credit institutions and NFOs send on a regular basis to Rosfinmonitoring information on all cases of denying operations, conclusion or termination of bank account agreements (bank deposit agreements). Based on this data Rosfinmonitoring will form an information package for its further transfer to the regulator, while the Bank of Russia, in its turn, will communicate to all supervised organisations subject to anti-laundering legislation the information received.
Rosfinmonitoring is currently working on a document which regulates information submission to the Bank of Russia.
Bank of Russia Regulation No. 550-P, dated 20 July 2016, which covers the information provision procedure is published in the Bank of Russia Bulletin today. The information exchange between the regulator and supervised organisations will be carried out electronically and will come into effect in 2017.
One needs to consider that the information from the Bank of Russia received within the said information exchange framework is not an independent and absolute reason for a credit or non-credit financial organisation to take a no-go decision. The Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ obliges market participants to take it into account when determining the risk of client’s involvement in such operations.
The law also envisages the regulator’s duty to provide the supervised with no-go data and mechanisms for multilateral exchange of such information. Credit institutions and NFOs send on a regular basis to Rosfinmonitoring information on all cases of denying operations, conclusion or termination of bank account agreements (bank deposit agreements). Based on this data Rosfinmonitoring will form an information package for its further transfer to the regulator, while the Bank of Russia, in its turn, will communicate to all supervised organisations subject to anti-laundering legislation the information received.
Rosfinmonitoring is currently working on a document which regulates information submission to the Bank of Russia.
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