Russia’s FATF rating for control over cryptocurrency transactions was downgraded
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The International Anti-Money Laundering Task Force (FATF) has downgraded one of Russia’s ratings due to insufficient regulation of virtual assets and cryptocurrencies. This is reported by RBC with reference to a report on the technical compliance of the country’s anti-money laundering system with FATF recommendations.
From July to December 2023, the FATF reviewed the country’s progress in implementing anti-money laundering standards. The audit was carried out by experts from the Eurasian Group on Combating Money Laundering and the Financing of Terrorism (EAG, FATF subgroup). Their assessments were approved at the FATF plenary meeting on February 23, Deputy Head of Rosfinmonitoring German Neglyad explained to RBC.
In the FATF rating, countries are ranked according to the level of implementation of the 40 main recommendations of the international group. Recommendation number 15 evaluates methods for monitoring and countering suspicious transactions involving virtual assets and cryptocurrency. On this point, it was decided to lower Russia’s rating from “compliant” to “partially compliant.” According to Mr. Neglyad, this “indicates the remaining shortcomings in this area.” “First of all, this is the need to regulate the circulation of cryptocurrency, that is, the activities of cryptocurrency exchanges and exchangers by analogy with financial organizations,” he explained.
The report suggests that Russia “has taken some steps” to regulate the area of transactions with virtual assets, but this has not been enough. In particular, Russian legislation does not stipulate who can act as providers of digital currencies. “Some bills related to the circulation of digital currencies are still in development. This shortcoming affects the entire recommendation,” EAG experts said.
At the same time, according to three FATF recommendations, Russia’s assessments were improved – from “compliant” to “substantially compliant”. “This is especially true for recommendations on compliance with measures to freeze the assets of persons included in the sanctions lists of the UN Security Council. These are individuals and legal entities associated with the financing of terrorism, terrorism and the financing of the proliferation of weapons of mass destruction. The technical compliance of Russian legislation with FATF recommendations in this area has been improved and assessed positively,” said German Neglyad.
August 1, 2023 It entered into force law on the digital ruble.
Digital ruble is a unique electronic code (token). Unlike cryptocurrency, it is issued exclusively by the Central Bank. It is also backed by gold and foreign exchange reserves and is tied to the value of the national currency. Digital rubles are stored in digital wallets. Since August 15, 13 banks carry out test operations with digital ruble. The Central Bank does not plan oblige banks will connect to the digital ruble by 2025. Prosecutor General’s Office wants receive data on transactions in the financial market.
About the benefits of using the digital ruble – in the material “Kommersant FM” “The digital ruble is strengthening its position”.
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