The Bank of Russia introduced the business concept of the information service risk rating of clients of credit institutions
It is assumed that a centralized information service platform of KYC (“Know your customer”), or, as it is called, the KYC platform is likely to be established on the basis of Bank of Russia. The regulator is developing a platform and necessary for its implementation amendments to the legislation.
The platform will allow you to assign customers of the banks according to the risk zones on the basis of objective criteria from the point of view of operations in order to legalization (laundering) of income obtained by criminal means and financing of terrorism. Banks will use information service, which to them will be made available to the risk assessment of the client. On the basis of risk will be determined mode of operation with the client (the decision to conduct transactions and open accounts). Customer information will be provided to all banks.
“We hope that the result will be a reduced burden on honest businessmen, first and foremost, on small and micro businesses, due to the number of duplicate requests for the same information from different credit institutions, — said the Director of the Department of financial monitoring and currency control of Bank of Russia Ilya Yasinsky. In turn, the credit institution will be able to concentrate at work with questionable clients, reduced preventive restrictive measures on the part of credit institutions in identifying minor and technical risks of ML/FT”.
Representatives of business associations, speakers at the meeting praised the idea of a platform. Entrepreneurs expect that its implementation will reduce the number of unlawful refusals of banks to conduct transactions and open accounts will promote transparency between banks and their customers.
It is planned that the information system will begin to fully operate in late 2021 to early 2022. But in the process of working on the project, the Bank of Russia intends to dialogue with business to identify possible bottlenecks and suggestions of entrepreneurs, which will improve the system.
Photo preview: IR Stone / Shutterstock / Fotodom