Declaration by a group of Russian banks
In order to combat the penetration of criminal capital into national economies and to counter the financing of terrorist activities, many countries in the world have created or are in the process of creating national mechanisms to counteract the laundering of criminal income and join forces in this area under the auspices of international organizations.
The Russian Federation also joined the international system of measures aimed at preventing the legalization of criminal income and terrorist funding and is an active participant of the Financial Action Task Force (FATF) and the Egmont Group. Russian law on money laundering and financing for terrorism incorporates major recommendations developed by the international community.
Since many products and services offered by banks are used as instruments for money laundering and in funding terrorism, and given the need to act in accordance with the applicable Russian law in this area
THE SBERBANK OF THE RUSSIAN FEDERATION,
INTERNATIONAL MOSCOW BANK, and
RAIFFEISENBANK AUSTRIA (MOSCOW)
declare that, in their professional activities, they will be guided by the following principles:
- Declaring the inadmissibility of the Bank’s utilization for money laundering and terrorism financing purposes;
- Identifying all Bank customers;
- Applying the «know your customer» principle to each of the Bank’s customers;
- Banning the opening of bearer accounts;
- Establishing correspondent relations only with financial institutions that take measures aimed at preventing money laundering and the financing of terrorism;
- Banning correspondent relations and transactions with «shell banks» that have no physical presence at their registered address;
- Informing the Federal executive body empowered to fight money laundering and terrorism financing (FSFM) in a timely fashion of transactions subject to reporting.
Given the complexity of the measures the Russian banking community must take in its work to combat money laundering and the funding of terrorism, in addition to meeting Russian legal requirements and implementing recommendations by those international organizations of which the Russian Federation is a part, these banks will also undertake joint actions, including:
- Sharing experience in the area of internal controls aimed at preventing money laundering and the financing of terrorism;
- Developing joint approaches to implementing the principle "Know your customer";
Jointly developing methods to identify suspicious transactions and financial schemes and of the standard characteristics of money laundering and terrorism financing transactions;
- Pursuing a united policy towards correspondent banks;
- Developing a unified approach to staff training on the issues of money laundering and funding for terrorism; holding joint training seminars, round tables, research-and-practical conferences;
- Preparing joint proposals on improving the legal and normative base regarding money laundering and funding for terrorism and sending them to the Bank of Russia, the Federal Service for Financial Markets and the Federal Service for Financial Monitoring; rendering practical assistance to these institutions in the development of normative documents in this field;
- Developing coordination between these 8 banks on a voluntary basis;
- Developing cooperation with Russian and foreign banks, their groups and associations interested in strengthening and improving Russian and international systems of money laundering and the funding of terrorism.
Other Russian credit institutions that share principles and intentions outlined are welcome to sign up to this Declaration.