Customer check to become available on KYC Platform from 1 October 2024
On 1 October 2024, the Bank of Russia launches a service which will allow users to request and obtain reference information as to whether the Know Your Customer (KYC) Platform classifies an individual entrepreneur or a legal entity as a party with a high risk of involvement in suspicious transactions.
Users may check both their own risk level and that of third parties, including existing and potential contracting parties. This will help reduce risks of working with bad-faith companies.
If a company or an individual entrepreneur disagrees with being included in the ‘red zone’ on the KYC Platform, such a party may request the Bank of Russia to reconsider the decision. It is worth mentioning that this option is available only to the customers that have not been subject to the anti-money laundering measures applicable by their bank. If such measures have already been taken, a company or an individual entrepreneur may contact the Interagency Commission under the Bank of Russia via the Online Reception as before.
The KYC Platform has been fully functioning since mid-2022. The Bank of Russia uses its own analytical data and a combination of criteria to classify bank customers (legal entities and individual entrepreneurs) into three risk groups: low-, medium-, and high-risk. To date, 96.8% of customers are classified as low-risk, 1.9% as medium-risk, and 1.3% as high-risk.
The information on the KYC Platform is given to banks for reference. They independently assess whether their customers act in good faith in terms of the anti-money laundering legislation.