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Russia has long been committed to combating money laundering and terrorist financing, actively participating in anti money laundering and counter-terrorism financing activities at the domestic, bilateral, regional, and international levels.
International and regional collaboration networks. Russia is a member of the Financial Action Task Force on Money Laundering (FATF). The organization has 39 member countries and 9 members of Financial Action Task Force type regional organizations (FSRBs), and is currently the most important international organization for anti money laundering and counter-terrorism financing in the international community. At the regional level, Russia initiated the establishment of the Eurasian Anti Money Laundering and Counter Terrorist Financing Group (EAG). The organization was established in Moscow in 2004 with the support of the Financial Action Task Force on Money Laundering, the International Monetary Fund, the World Bank, and other countries. At present, cooperation among the financial intelligence agencies of the member states of the organization is mainly carried out within the framework of the Egmont Group, a financial intelligence agency.
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2、 ; Related legislation;
Russian laws combine the requirements and suggestions in international legal documents. In general, the legal basis of the anti money laundering and anti-terrorism financing system is the Strasbourg Convention (the Convention of the European Council on the Laundering, Tracing, Seizure and Confiscation of the Proceeds of Crime, approved by the Russian Federation in its Law No. 62- ФЗ of May 28, 2001), the International Convention for the Suppression of the Financing of Terrorism (approved by the Russian Federation in its Law No. 88- ФЗ of July 10, 2002), the Vienna Convention (the United Nations Convention against Narcotic Drugs and Psychotropic Substances of 1988, and the Supreme Soviet Union in its Resolution 1711-1 of October 9, 1990) and other international regulations.
The above-mentioned conventions are also reflected in national laws. The basic regulations of Russian law enforcement agencies in the field of anti money laundering are: the Russian Anti Terrorism Law of July 25, 1998; The Business Investigation Law of August 12, 1995; The Anti Money Laundering and Counter Terrorism Financing Law of August 7, 2001; Russian Criminal Law; Russian Criminal Procedure Law; Resolution No. 1040 of the Russian government on counter-terrorism measures on September 15, 1999; On September 13, 2004, Russian President Putin issued Presidential Decree No. 1167 on emergency measures to improve counter-terrorism efficiency.
An important contribution to improving the legal application practice of criminal cases involving money laundering is the adoption of Resolution No. 23 of the Supreme Court of Russia on November 18, 2004, on the Trial Practice of Illegal Business and Money Laundering Cases. In the resolution, the Russian Supreme Court explained that in order to hold money laundering personnel criminally responsible, it does not require the court's judgment on upstream crimes to take effect, and has defined illegal financial transactions.
Bilateral cooperation mechanism between China and Russia. The People's Bank of China, the Central Bank of Russia, and the Financial Supervisory Agency have signed bilateral legal documents such as the "Agreement on Anti Money Laundering Information Exchange and Personnel Training", "Agreement on Anti Money Laundering and Counter Terrorist Financing Cooperation and Information Exchange", "Memorandum of Understanding on Anti Money Laundering", and "Memorandum of Understanding on Preventing Money Laundering and Counter Terrorist Financing". They cooperate on the collection, analysis, exchange, system development, and cutting-edge research of suspected money laundering, terrorist financing, and related criminal intelligence, and carry out exchanges and cooperation in anti money laundering and counter terrorist financing regulatory cooperation, on-site inspections, personnel exchanges and training, etc. As an important measure for the joint prevention of money laundering and terrorist financing by the central banks of China and Russia, the Russian Central Bank established a representative office in China in 2016, which was its first representative office established abroad.
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3、 ; Regulatory agencies;
The Federal Financial Supervisory Service (FSFM), established in 2001, is Russia's financial intelligence unit and anti money laundering regulatory agency. Its main goal is to detect and combat money laundering, terrorist financing, and other financial crimes. FSFM collects and analyzes financial intelligence and distributes it to law enforcement agencies and other relevant institutions. It formulates anti money laundering regulations, supervises compliance, and conducts inspections and investigations.
Main Functions; :
1. Implement supervision on the compliance of legal and natural persons with the requirements of the Russian Federation Law on the Legalization of Criminal Gains (Money Laundering) and the Financing of Terrorism, and bring offenders to justice.
2. Collect, organize, and analyze information on financial transactions that should be supervised under Russian Federation law.
3. According to the Russian Federation Law on the Legalization (Money Laundering) of Criminal Gains and the Financing of Terrorism, the obtained financial transaction information shall be inspected, including obtaining necessary explanations for the submitted information.
4. Identify clues related to the legalization of criminal proceeds (money laundering) and the financing of terrorism.
5. According to the Russian Federation Law on the Legalization of Criminal Gains (Money Laundering) and the Financing of Terrorism, monitoring of financial transactions shall be implemented.
6. Obtain information (excluding citizen privacy) related to the authority of this agency from federal state government agencies, Russian Federation subject government agencies, local autonomy agencies, and the Central Bank of the Russian Federation, including inquiries.
7. Provide corresponding custody and protection systems for official, banking, tax, trade secrets, communication secrets, or other confidential information obtained during the operation of this bureau.
Establish a unified intelligence system in the field of combating the legalization of criminal proceeds (money laundering) and terrorist financing.
9. Establish and use a federal database in the field of combating the legalization of criminal proceeds (money laundering) and terrorist financing, and ensure that all information systems are standardized and functionally consistent.
10. Draft a list of organizations and individuals suspected of participating in extremist activities and report it to the Ministry of Finance of the Russian Federation.
According to federal law, when there is sufficient evidence to prove the legalization of criminal proceeds (money laundering) and terrorist financing involved in a transaction, a report should be submitted to the judicial authorities and relevant information should be provided for their consultation.
12. Exercise verification power over institutions engaged in fund transactions and without regulatory organizations in their field of activity
13. According to federal law, announce the decision to suspend fund transactions.
14. Develop and take action to prevent illegal activities in the areas of legalizing criminal proceeds (money laundering) and terrorist financing.
15. Coordinate the activities of federal executive authorities in the areas of legalizing criminal proceeds (money laundering) and terrorist financing.
16. Collaborate with the Central Bank of the Russian Federation in the fields of legalizing criminal proceeds (money laundering) and terrorist financing.
17. Establish cross departmental agencies in conjunction with other federal executive authorities in accordance with relevant regulations to handle the legalization of criminal proceeds (money laundering) and terrorism financing affairs.
18. Establish a scientific advisory and expert committee within its scope of authority.
19. Propose a cross departmental plan and outline to combat the legalization of criminal proceeds (money laundering) and terrorist financing, and draft a report on the measures taken.
20. Representing the Russian Federation in international organizations related to the legalization of criminal proceeds (money laundering) and the financing of terrorism, and participating in the activities of international organizations in the field of the legalization of criminal proceeds (money laundering) and the financing of terrorism in accordance with regulations.
According to relevant regulations and within the scope of authority, cooperate with foreign state institutions, organizations, officials, and citizens both within and outside the territory of the Russian Federation.
22. In accordance with international treaties signed by the Russian Federation, cooperate and exchange intelligence with foreign functional agencies in the fields of combating the legalization of criminal proceeds (money laundering) and terrorist financing.
23. Draft a list of countries (regions) that do not participate in international cooperation in the areas of legalization of criminal proceeds (money laundering) and terrorism financing, and report it to the Ministry of Finance of the Russian Federation.
24. Participate in the development and implementation of international cooperation plans, draft and sign international treaties of the Russian Federation, including cross departmental ones, on the legalization of criminal proceeds (money laundering) and the financing of terrorism.
25. Study the international experience and practice of legalizing criminal proceeds (money laundering) and terrorist financing.
26. Summarize the practice of applying Russian Federation law in the fields of legalizing criminal proceeds (money laundering) and terrorist financing, propose improvement suggestions, and submit them to the Ministry of Finance of the Russian Federation.
27. Determine foreign citizens or stateless persons who are not welcomed within the territory of the Russian Federation through a decision in accordance with the laws of the Russian Federation.
28. This includes hiring academic research institutions or other organizations, as well as experts, to participate in technical certification through contract signing, developing training outlines, textbook writing, software and information security methods, and establishing financial information monitoring systems while ensuring compliance with national or other legally protected secrets.
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4、 Compliance requirements;
1. Customer Due Diligence (KYC): Financial institutions must conduct customer identity verification, understand the source of the customer's funds, and perform due diligence procedures based on customer risk classification (natural persons, legal persons, foreign customers, etc.) before establishing a relationship with the customer.
2. Suspicious Transaction Report (STR): Financial institutions and other regulated entities must identify and report any transactions suspected of involving money laundering or terrorist financing. The report should be submitted to the Federal Financial Monitoring Agency (Rosfinmonitoring).
3. Continuous monitoring: Financial institutions must continuously monitor customer trading behavior to identify abnormal activity and ensure regular updates of customer information, especially when customer behavior or risk conditions change.
4. Record keeping: Financial institutions must keep customer transaction records, identity verification materials, and due diligence documents for at least five years for regulatory review.
5. Anti money laundering internal control system: All regulated entities must establish and implement an anti money laundering internal control system, including designating senior management personnel responsible for anti money laundering, conducting regular employee training, and using advanced technological tools to monitor and analyze suspicious transactions.
6. International Cooperation: Russia collaborates with other countries and international anti money laundering agencies through the Federal Financial Supervisory Service to combat transnational money laundering and terrorist financing activities.
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