Russia aims to effectively combat money laundering and terrorist financing. The Russian Federation conducts works in the field of AML, being aware of the risks posed by money laundering and terrorist financing. Russia's AML law came into force in 2002 and has been revised over time. With this law, Russia has defined money laundering crime and declared that it will punish those who committed this crime.
Serious crimes such as corruption and drug trafficking pose significant risks and threats to Russia. The Russian government is aware of the importance of the money laundering process resulting from these crimes. Russia has defined these risks with its legal regulations and has determined the measures to be taken. Thus, Russia continues its struggle against money laundering and terrorist financing, together with the legal regulations and the cooperation of authorized institutions.
Federal Service for Financial Monitoring (Rosfinmonitoring) is the federal body of Russia responsible for anti-money laundering and the prevention of terrorist financing. Federal Service for Financial Monitoring (FSFM) identifies global and local threats and takes precautions for them. Federal Service for Financial Monitoring (FSFM) also works with international AML regulators and bodies to work to improve existing regulations and measures.
In Russia, banks, money transfer companies, leasing companies, investment and securities companies and insurance companies are regulated entities under the AML obligation. According to Russia's AML regulations, these organizations have to identify their customers and detect suspicious transactions that may be financial crimes. Regulated organizations are required to implement the AML program and internal control programs to ensure their compliance. Regulated organizations should employ AML compliance officers and train these employees regularly. AML compliance officers must report suspicious transactions to the Federal Service for Financial Monitoring.
Organizations under the Anti-Money Laundering obligation are required to report at least 600,000 RUB (8,000 EUR) cash or non-cash customer transactions and at least 3m RUB (40,000 EUR) real estate asset customer transactions to the financial intelligence unit. In addition, organizations under the AML obligation have to detect PEPs and report abnormal financial transactions of PEPs to supervisory units.
Russia's AML regulations have reported that those who commit a financial crime will be the most severely punished. However, obliged institutions that do not carry out AML checks cannot prevent financial crimes. Russia warns companies that do not meet AML obligations to ensure AML compliance. Companies that do not meet AML compliance are subject to fines and administrative penalties. In addition, these companies are at risk of losing their licenses. Therefore, companies under the AML obligation must take the necessary measures and protect themselves from risks of fines and losing licenses.
As Sanction Scanner, we provide solutions that support AML compliance processes of companies under the AML obligation. Companies can detect financial crimes and risks by performing sanction & PEP checks on our global comprehensive data and do not compromise AML compliance. You can contact us for information about our Sanction & PEP screening services.
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