Results of sectoral assessment of risks of the legalisation (laundering) of criminally obtained incomes and the financing of terrorism

Acting in line with the international standards on anti-money laundering and countering financing of terrorism and financing the proliferation of weapons of mass destruction of the Financial Action Task Force on Money Laundering (FATF), the Bank of Russia held the first sectoral risk assessment in the sphere money laundering and financing of terrorism (ML/FT).

The assessment helped to reach the common understanding of ML/FT risks specific for supervised entities and to make conclusions on measures needed to bring to the minimum the chances for credit institutions and non-bank financial institutions to be engaged in illegal activities.

In the course of the assessment, the Central Bank of the Russian Federation took into account the results of the national assessment of ML/FT risks and regional peculiarities identified by Bank of Russia regional branches. Based on the assessment outcomes, all types of supervised organisations have been assigned a specific level of ML/FT risk on a four-level scale (high, elevated, moderate, low).

The Bank of Russia uses the results of sectoral assessment of ML/FT risks for supervisory purposes. Drawing on the results of the sectoral assessment of ML/FT risks, the Bank of Russia prioritises the following types of supervised entities: credit institutions, professional securities market participants, insurance companies, consumer credit cooperatives, and pawn shops.

Sectoral ML/FT risk assessment will be updated on a regular basis.

As set forth by FATF recommendations, countries shall apply measures for the identification and assessment of ML/FT risks and, based on this assessment, engage in risk-based approach ensuring the compliance of AML/FT measures with risks identified. This approach shall assist in the efficient resource allocation, including the resources of supervisory bodies, for AML/FT purposes.

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