President Dmitry Medvedev has signed a law bringing Russian banking legislation into line with recommendations made by the Financial Action Task Force.
Propeller The first change concerns banks and financial institutions: from now on, they will be prohibited from revealing to their clients the measures they take to prevent money laundering.
The second change is about closer monitoring of any transactions involving a party from a country that does not comply with recommendations set by the task force.
Apart from punishment, warnings will be introduced for anyone who breaks the legislation.
The new law will become effective in 180 days. Apart from Russian banks, it will apply to branches of foreign banks in the country.
“I think the new law will be effective in reducing some of the money laundering that exists in Russia, and especially outside of Russia,” Daniel Klein, a lawyer from Hellevig, Klein and Usov, told RT. “But to be honest, there will always be money laundering in Russia – as well as in any other country of the world. It’s impossible to completely eradicate it.”
The Financial Action Task Force is an inter-governmental body combating money laundering and terrorism financing. Prior to the current presidential initiative, Russia was not up to speed with the task force standards, despite being a member of the body since 2003.
On the whole, the Financial Action Task Force provides member countries with 40 recommendations for legislation and another nine for policing terrorism financing.
Source: RT
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