Russian Federation

New Documents

The Central Bank of Russia announced the establishment of criteria to help banks detect payment instruments, including cards and electronic wallets, when they are being used by illegal online casinos, pyramid schemes, and other illicit businesses.

The Federal Financial Monitoring Service of Russia, or Rosfinmonitoring, highlighted the 16th meeting of the Council of Heads of Financial Intelligence Units of the Members of the Commonwealth of Independent States, which was chaired by Rosfinmonitoring Director Yury Chikhanchin.

News

Enforcement Actions

The Central Bank of Russia issued a notice revoking the banking license of the Ivanova, Russia-based bank for its anti-money laundering and counterterrorist financing requirements.

The Central Bank of Russia issued a warning against the Krasnodar-based bank for insufficient anti-money laundering and counterterrorist financing internal controls in violation of Part 1 of Article 15.27 of the Administrative Offenses Code.


Important Facts

  • The U.S. Department of State labels the Russian Federation as a major money laundering jurisdiction. Sources of laundered funds include corruption within state officials, embezzlement of public funds, tax evasion, fraud,, and drug trafficking. Russia is a transit and destination country for international narcotics traffickers, particularly from Afghanistan. Common methods used to launder money include: foreign and national shell entities; securities instruments; virtual currencies; precious metals; domestic and foreign real estate transactions and construction; pension funds; and luxury consumer goods. Russia's cash declaration system is only applicable at the external borders of the Eurasian Economic Union, meaning that currency can move undeclared within the country's borders.  Another significant problem in the country is cybercrime since both Russian backed-hackers and organized criminal groups work together to abuse virtual currency for money laundering purposes. The country lacks  corporate criminal liability legislation which further enables money laundering.  In 2020, the Central Bank of Russia revoked 15 bank licenses for regulatory weaknesses. -Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 7 High : 2
Largely Compliant : 28 Substantial : 4
Partially Compliant : 5 Moderate : 5
Non-Compliant : 0 Low : 0

BASEL i

Rank : 52/141
Score : 5.51/10

TRANSPARENCY INTERNATIONAL i

Rank : 137/180
Score : 28/100

Tax Justice Network i

Rank : 44/133
Score : 57/100