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On March 27, 2019, training for students of the 7th stream of the BCL (Blockchain Lawyers) supplementary education program was completed at the Federation Council. 

As part of that, the audience in a round table format along with the first deputy chairman of the Federation Council Committee on Economic Policy, the founders and teachers of the course, as well as invited experts discussed the regulation of the digital economy and modern technologies in Russia.

Natalya Manuilova paid special attention to the following issues: that the Bank of Russia had several new and important documents aimed at fulfilling the requirements of the legislation in the area of countering the legalization (laundering) of proceeds from crime and the financing of terrorism (AML/CFT). Important on the approach to the organization of work in this direction.

Thus, one of these documents is Directive No. 5083-U of 02/27/2019 “On Amendments to the Regulation of the Bank of Russia of March 2, 2012 No. 375-P“ On the Requirements for the Rules of Internal Control of a Credit Organization to Counter Legalization (Money Laundering) criminal proceeds and the financing of terrorism. ” In accordance with the changes that will come into force on 04/05/2019, the ML/TF risk management systems in credit institutions will have to take into account the results of a national risk assessment of transactions (transactions) in order to legalize (launder) proceeds from crime, and the financing of terrorism, posted on the official website of the authorized body on the Internet information and telecommunications network.

The possibility for credit institutions to install in the Risk Management Programs “other factors independently determined by the credit organization” scares many, but these factors must be fixed, fixed in the Rules of the credit organization. And no one has canceled a systematic approach - why are some requirements for some, and others for others? “Documentary fixation” will compel to substantiate certain AML/CFT measures.

In accordance with the Bank of Russia Newsletter No. IN-014-12/27 of 03/27/2019 “On Approaches to the Procedure for the Implementation of Credit Rights by Credit Institutions Provided by Sub-clause 1.1 of Clause 1 of Article 7 of Federal Law No. 115 “On Counteracting Legalization (Laundering) of Revenues criminal proceeds and the financing of terrorism” the Bank of Russia draws the attention of credit institutions to the need to follow the results of their assessment of the extent (level) of the risk of a client’s operations for AML/FT when implementing these powers in accordance with its own rules of internal control in order to counter the legalization (laundering) of proceeds from crime and the financing of terrorism.

Will high-risk transactions (deals) with digital assets be added to the list? Definitely! Companies need to start preparing letter templates - explanations about the sources of funds received to the account, etc.

The Bank of Russia still had to pay attention to the not quite adequate measures of credit institutions regarding blocking accounts under federal law 115, inquiries about the source of clients funds, whose operations in principle do not bear and cannot bear the risks of ML/FT and the risk of involvement credit organization in the scheme of ML/FT.

Let's hope for positive changes, because for a long time, the “struggle” of a number of banks on AML/CFT issues has discredited the AML/CFT system as a whole, and only the one who has not come to the bank does not care about 115-FL.

At the same time, the information letter of Rosfinmonitoring dated March 1, 2019 No. 59 “On Methodological Recommendations for Assessing ML/TF Risks by Organizations that Operate with Monetary Funds or Other Property and individual entrepreneur” was discussed.

From which it was seen that there are three types of risks:

- risks associated with countries and individual geographic territories (country risks);

- customer related risks (customer risks);

- risks associated with products, services, operations (transactions) or supply chains made by the customer (operational risks), a high level for operations with digital assets.

At the beginning of the year, KPMG surveyed more than 100 of the largest companies and found out which technologies the Russian business is implementing, which budgets of the organization are willing to spend on such projects and how they generally approach the management of digital transformation.

Main conclusions:

63% of respondents indicated that they have developed a digital transformation program, but in reality this more often means a set of short-term pilot projects;

77% of responding companies expect increased operational efficiency and reduced costs through digitization of processes;

The most popular technologies that have already been tested by Russian companies: big data analysis and predictive analytics (68%), chat bots (51%), robotization of office processes (50%);

The position of the CDO (Chief Digital Officer) is only in 16% of companies, the committee on digitalization - in 13%. In most Russian companies, decisions on digitalization projects are made by individual consideration at the top management level;

65% of companies attract startups to implement pilot projects;

In 2019, 36% of companies are ready to invest more than 100 million rubles in the implementation of projects on digitization of processes, while 55% of respondents plan to spend less than 50 million rubles;

51% of companies expect that the investment will pay off in less than 2 years, another 43% expect return on investment within 2-5 years.

Source: KPMG | RU.

Published in INDUSTRY REPORTS

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