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Anti-money laundering rules will be strengthened in line with FATF recommendations
Practical Law Legal Update 8-500-4999 (Approx. 2 pages)
Anti-money laundering rules will be strengthened in line with FATF recommendations
by White & Case LLP
| Russian Federation |
This article is part of the PLC Global Finance September e-mail update for the Russian Federation.
Speedread
The State Duma has adopted in the first reading Draft Law No. 217225-5 on amendments to the Anti-Money Laundering Law. The amendments aim to strengthen Russian money laundering laws by, among other things, extending them to foreign subsidiaries of Russian "controlling" companies, as recommended by FATF.
On 23 September 2009 the State Duma adopted in the first reading Draft Law No. 217225-5 on amendments to the Anti-Money Laundering Law.
The Draft Law seeks to strengthen the Anti-Money Laundering Law in line with the recommendations of the Financial Action Task Force (FATF).
In particular, it provides that the Anti-Money Laundering Law extends to foreign subsidiaries of Russian "controlling" organisations (that is, organisations, carrying out operations with their clients' monetary funds and other assets, that are obliged to perform a number of anti-money laundering duties).
It also allows controlling organisations to refuse carrying out an operation if they have grounds to believe that the operation may serve money-laundering purposes.
The provisions of the Draft Laws will apply if adopted by the State Duma in three readings, approved by the Federation Council, signed by the President, and officially published.