Fri, 29/01/2016
The Russian legislation on money laundering and terrorism financing has been updated. By Yuliya Shibukova, Relationship Manager, GSS Russia
Federal Law No. 424-FZ, amending the legislation of the Russian Federation in order to improve the system of countering crime income and terrorism financing in the banking sector, came into force in January.
The provisions of the Federal Law on Countering the Legislation of Illicit Earnings (Money Laundering) and Terrorism Financing and others, were revised and supplemented by the following:
- A client can be an individual, a legal entity, or a foreign non-legal entity, which is serviced by an organisation performing monetary or other asset transactions;
- A foreign non-legal entity is deemed to be an organisational form, established in accordance with the laws of a foreign state without legal status (fund, partnership, association, trust, another form of collective investments), which in accordance with its own law shall be entitled to carry out activities aimed at the recovery of income (profit) for the benefit of its members (shareholders, principals or others) or other beneficiaries;
- Financial institutions are obliged to implement proper measures to identify the beneficial owners of foreign non-legal entities.