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The legal framework for credit co-operation in Russia has been improved
Practical Law UK Legal Update 5-500-2317 (Approx. 2 pages)
The legal framework for credit co-operation in Russia has been improved
by White & Case LLP
| Published on 15 Sep 2009 • Russian Federation |
This article is part of the PLC Global Finance August e-mail update for the Russian Federation.
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In late July, two new Federal Laws were passed regulating credit co-operatives. One of the laws concerns their establishment, reorganisation, liquidation, membership, management and assets; the other extends the anti-money laundering regime to include credit co-operatives.
Federal Law No. 190-FZ "On Credit Co-operation"
On 18 July 2009, the President signed Federal Law No. 190-FZ "On Credit Co-operation." The Law (save certain provisions) entered into force on 4 August 2009 and invalidated Federal Law No. 117-FZ "On Credit Consumer Co-operatives of Individuals," dated 7 August 2001.
The Law improves the legal framework for the activities of credit consumer co-operatives acting in the sphere of non-banking financing. Credit co-operatives are non-commercial organisations established for providing financial aid to their members who are individuals and/or legal entities. The new Law regulates their establishment, reorganisation, liquidation, membership, and their management and assets.
As of 5 August 2010, credit co-operatives will be obliged to comply with a number of financial ratios set by the Law (for example, the amount of their reserve fund, the maximum amount of funds that may be received from a single member and from non-members, and a maximum amount of funds that may be lent to a single member).
As of 5 August 2011, credit co-operatives will be obliged to join self-regulatory associations of credit co-operatives within three months of their establishment. These associations will pay compensation to members of credit co-operatives if the co-operative lacks sufficient funds to perform obligations towards its members.
Credit co-operatives' activities will be controlled by their self-regulatory associations and a federal executive body authorised by the Government, as specified by the Law.
Credit co-operatives must amend their foundation documents in accordance with the Law by 4 August 2010.
Federal Law No. 163-FZ amending the Anti-Money Laundering Law
On 17 July 2009 the President signed Federal Law No. 163-FZ amending the Anti-Money Laundering Law. The Law entered into force on 2 August 2009.
The Law was adopted in connection with the Federal Law "On Credit Co-operation" (see above). The Law adds credit consumer co-operatives to the list of organisations carrying out activities with their clients' monetary funds and other assets, which are obliged to perform a number of anti-money laundering duties (for example, identify their clients, develop rules of internal control and report on certain operations to the Federal Service for Financial Monitoring).