#AceFinanceNews – MOSCOW – April 11 – Russian President Vladimir Putin instructed Russian government and the Central Bank of Russia (CBR) to develop “a mechanism of receiving information from foreign banks about monetary funds and valuables” owned by Russian state officials at these banks.
These are crediting institutions situated in foreign countries. The decree to this effect was formulated in a National Anti-Corruption Commission plan for 2014-2015 approved on Friday.
Information requested from foreign banks can also include facts of “possession and use of foreign financial instruments by public servants.”
This information “can be provided to the CBR by foreign lending organisations through conclusion of agreements on information exchange between authorised Russian authorities and law enforcement agencies in foreign countries,” the document noted.
A report on results of fulfilling the instruction should be submitted to the president before March 1, 2015.
#AceFinanceNews – MOSCOW- March 26 – Russia’s Central Bank(CBR) has revoked licenses from three banks.
“According to order #OD-406 of the Bank of Russia dated March 26, 2014, the license for banking transactions has been revoked from crediting organization Sberinvestbank, CJSC (registration #1743, Yekaterinburg) as of March 26, 2014,” the regulator’s message says.
This measure has been applied due to “crediting organization’s non-compliance with federal legislation regulating banking activity, as well as with standard act of the Bank of Russia”.
A similar measure has been applied to My Bank — Ipoteka and Sovincom commercial bank.
According to the Central Bank of Russia, Sovincom commercial bank did not accumulate reserves adequate to risks of possible credit losses, and did not fulfil the requirements of the watchdog’s instructions. In addition, the crediting organization was involved in ambiguous transactions, the watchdog noted in its statement. In 2013, the volume of clients’ transactions with signs of ambiguous operations exceeded 6.8 billion rubles ($191.3 million).
Non-banking crediting organization EnergoBusiness was also stripped from license.
The Bank of Russia said EnergoBusiness violated the procedure of keeping accounting records, did not provide proper internal controls, “committed violations of Central Bank orders on countering legalization of criminally received incomes and funding terrorism”.
In terms of assets volume, the crediting organization ranked 875th in Russia’s banking system as of March 1, 2014.
The main reason for large-scale and detailed inspections of Russian banking system is to fight suspicious financial transactions, CBR Chair Elvira Nabiullina said earlier.
Russian Finance News
#AceFinanceNews The use of Bitcoins and other Cryptocurrencies carries the risk of violating citizens’ property rights and cannot be used in Russia, the country’s Prosecutor General’s Office concluded after meeting with the Central Bank, FSB, and Interior Ministry.
“The monitoring of the use of virtual currencies shows an increasing interest in them, including for the purpose of money laundering, profit obtained through illegal means,” ITAR-TASS quoted the Prosecutor General’s Office as saying.
“Russia’s official currency is the Ruble. The introduction of other types of currencies and the issue of money surrogates are banned,” the statement says, meaning that Cryptocurrencies – the most popular of which is Bitcoin – cannot be used by Russian citizens or corporations.
Members of the meeting also outlined recommendations on how to prevent the use of virtual currencies.
Last month, Russia’s Central Bank (CBR) warned people against using virtual currencies, as they could be tied to gangs involved in money laundering and terrorist financing. CBR issued a statement stating that virtual currencies are illegal under Article 27 of the federal law ‘On the Central Bank of the Russian Federation.’
Bitcoin is an independent currency which is not regulated by a government and therefore “carries a high risk in devaluation.”