Bank of Russia to exchange information with credit institutions via personal online accounts

The Bank of Russia plans to increase the number of supervised organisations connected to its information exchange via a system of personal online accounts. Now, in addition to non-bank financial institutions, the information exchange will expand to include banks, as stipulated by the regulator’s draft ordinance.

The document suggests that the regulator will send credit institutions queries, requests, orders and explanations regarding the application of various regulations through personal online accounts opened on the Bank of Russia website. Banks, in turn, will use these accounts to send their responses, queries and comments. These requirements will not apply to the procedure for submitting reporting by credit institutions.

The draft also requires that participants in the information exchange encode electronic documents using certified data encryption tools. Automatic creation of electronic online accounts for banks is planned after the ordinance comes into effect.

The new system of interaction will speed up document workflow between banks and the regulator. It will also include instances requiring the protection of shareholders’ and investors’ rights and legitimate interests in financial markets. In addition, a supervised entity's location, however distant, will cease to be a meaningful factor, while electronic interaction will make it possible to know the exact time of Bank of Russia orders’ delivery to credit institutions.