On February 27, 2018 in Nizhny Novgorod under the Chairmanship of the Deputy Plenipotentiary representative of Russian President in the Volga Federal district A. Mironov, jointly with Rosfinmonitoring the meeting "On the preparation for the fourth round of mutual evaluations of the Financial Action Task Force (FATF)" was held. The meeting was attended by representatives of law-enforcement, control and supervisory bodies of the Volga Federal district.
During this round of evaluation, the FATF assessors’ mission to the Federal subjects of Russia is scheduled. In this regard, by order of the Head of the President’s Executive Office A. Vaino on the basis of federal districts together with representatives under the leadership of Rosfinmonitoring it is necessary to organize a series of meetings aimed at quality preparation of territorial law-enforcement and supervisory authorities to the forthcoming assessment.
The Volga Federal district was chosen as the "pilot" site for all federal districts of the Russian Federation. The meeting is the first in a series of meetings in anticipation of the report of the Russian Federation, which will be organized in all federal districts of the country during 2018.
Deputy Plenipotentiary representative of Russian President in the Volga Federal district A. Mironov:
Practice shows that the preparations for the FATF mission require coordinated action by law enforcement and supervisory bodies, not only at the federal but also at the regional level. First of all, this is due to the fact that the fourth round, which starts at the end of this year, will focus directly on how effective is our "anti-money laundering" legislation.
State Secretary – Deputy Director of Rosfinmonitoring P. Livadnyy:
This meeting opens the active phase of the preparation of the Russian Federation to the FATF evaluation. I would like to emphasize that the actual fourth round of the evaluation has been underway since 2015. A number of countries have already passed this assessment.
P. Livadnyy highlighted that the FATF evaluations were characteristic for their fairness. Due to that fact a number of financially developed countries that had already been assessed got average results and were put on the so-called FATF “regular follow-up” with the enhanced attention to the country’s financial sector and the AML/CFT system in general.
The FATF standards should be viewed as the benchmark that truly represents the best practices in the fight against economic crime, terrorism financing and illicit proliferation of weapons of mass destruction, as well as advice that you should follow to effectively combat these illegal activities.
In their reports the representatives of the Russia’s financial intelligence explained the key problems identified during the preparation to the FATF mission.
Special attention was paid to the following topics:
Also, approaches to the national ML/TF risk assessment were discussed at sectional meetings with representatives of the Supervisory bodies of the Volga Federal district and at the off-site meeting of the Compliance Council, including the issues of private sector's understanding of the main threats, vulnerabilities, negative ML/TF trends and mitigating measures required.
Rosfinmonitoring is the center for assessment of national security risks that emerge because of money laundering, terrorism financing and proliferation of weapons of mass destruction as well as elaboration of measures for countering them.
In 2018, the Russian Federation will undergo an audit of the visiting assessment mission of the international Financial Action Task Force (FATF), which will lead to a conclusion on the degree of compliance of the Russian Federation with international standards in the field of combating money laundering and financing of terrorism (AML/CFT).
According to the outcomes of the previous evaluation in 2008, the FATF experts identified a number of deficiencies (including inadequate transparency of information on beneficial owners and control over legal entities), which resulted in Russia's regular monitoring.
In September 2014 following the defense of the third report on progress at the MONEYVAL plenary meeting the Russian Federation was removed from the regular monitoring till the next evaluation. In case of a low rating of compliance with the FATF requirements in 2018, a regime of enhanced monitoring and application of economic sanctions will be introduced.
Due to the importance of the preparation to the FATF evaluation the President of the Russian Federation elaborated a special commission which is compared of representatives of the Prosecutor General’s Office, MIA, FSB, FCS, Investigative Committee, Federal Tax Service, Russian State Assay Chamber, Roskomnadzor, Ministry of Justice and the Central Bank. The Commission is headed by the Director of Rosfinmonitoring.
The Commission is mandated to promote collaboration and coordination of activities of all state bodies and organizations involved in the preparation of the FATF evaluation.
The methodology for assessing AML/CFT system was approved by the FATF in 2013 and involves consideration of two complementary components: technical compliance and effectiveness.
Technical compliance – is meeting the requirements of the FATF 40 Recommendations, effectiveness – is capacity of the AML/CFT system participants to reach the immediate outcomes (IO) in liquidation of the ML/TF risks.