AML/CFT Landscape in Russia in Need of Regulatory Control

          AML/CFT Landscape in Russia in Need of Regulatory Control

  PR Newswire

  MOSCOW, May 7, 2013

MOSCOW, May 7, 2013 /PRNewswire/ --

  *BankersAccuity present findings from the 11 ^th  International AML/CFT
    Conference in Moscow

BankersAccuity , the global standard for payment efficiency and compliance
solutions, today provided an assessment of money laundering and financial
terrorism in Russia following their attendance at the recent International
AML/CFT Conference hosted by Association of Russian Banks, Federal Financial
Monitoring Service and the Bank of Russia.

The regulatory environment for Anti-Money-Laundering (AML) and Combatting
Financial Terrorism (CFT) in Russia is drastically underdeveloped. Global
sanctions are officially invalid unless confirmed by President Putin under a
Russian Directive and there is a scarcity of legislation and terminology to
address Politically Exposed Persons (PEPs).

With numerous cases of illicit financial activity in the country, financial
institutions in Russia are increasingly under pressure from foreign
counterparties to comply with international sanctions and AML screening.
Whilst, in Moscow for the International AML/CFT Conference, BankersAccuity
hosted an event for Russian compliance officers providing education on the
'Identification of PEPs, compliance monitoring and transaction efficiency' and
received feedback from attendees that there is uncertainty on how to comply
within the constraints of Russian regulations. This is all the more critical
now that the Russian Central Bank has brought in the 375-P legislation
focusing "On the requirements for internal control in order to combat money
laundering and terrorist financing."

375-P came into force on 29 April 2012, following the latest requirements from
Financial Action Task Force (FATF). A key component of this legislation
encourages organisations to apply a risk based approach in monitoring for
money laundering activity focusing on offshore entities and ultimate
beneficiaries. Financial institutions had until 29 April 2013 to modify their
AML/CFT systems accordingly, or risk facing action.

Yet with small monetary penalties in place and gaps in the legislation meaning
that requirements could be superficially applied to satisfy Central Bank
inspectors, many compliance experts in Russia feel that 375-P is not tight
enough to deter money laundering in Russia.

"It is clear that AML/CFT compliance in Russia has a way to go in meeting FATF
Recommendations and international standards" comments Hugh Jones, President
and CEO, BankersAccuity. "The Russian Federation is taking steps to rectify
this in the long run by presenting Draft Law № 196666-6 to combat illegal
financial transactions. With global money laundering fines and regulatory
scrutiny at an all-time high, Russian organisations need to act now to bring
perpetrators of financial crime to account. At BankersAccuity, we're striving
to assist Russian compliance officials in navigating the regulatory landscape,
applying globally recognised best practices and solutions in order to combat
illicit financial activity in the region".

Notes to the Editors

About BankersAccuity:

Owned by one of the world's leading business to business publishers, Reed
Business Information and part of Reed Elsevier , BankersAccuity sets the
global standard for payment efficiency and compliance solutions. It includes
Bankers Almanac and Accuity, premier data services that have been providing
solutions to banks and businesses worldwide for over 175 years.

About Reed Business Information:

Reed Business Information brings leading brands to an audience of millions of
decision makers worldwide through its multi- platform media of data services,
online lead generation services, community websites, magazines and events.

Contacts:   Cognito Bryony Scragg/ Paul Bowhay Direct: +44-(0)20-7426-9400
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