Rosfinmonitoring

Federal Financial Monitoring

Flag of Russian financial monitoring, 2008
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Agency overview
Formed	November 1, 2001 (as Committee for Financial Monitoring of Russia)
Headquarters	K-450, D.39 Myasnitskaya Street, Moscow
Agency executive	Director, Yuri Chikhanchin
Parent agency	Administration of the President of Russia
Website	FedSFM.Ru

The Federal Financial Monitoring Service of the Russian Federation (Russian: Федеральная служба по финансовому мониторингу; Росфинмониторинг) (known as Rosfinmonitoring) is a Federal Service that was created by a decree of President Vladimir Putin of November 1, 2001, and aimed to fight money laundering.

From November 1, 2001, to March 9, 2004, it was called Financial Monitoring Committee (Russian: Комитет по финансовому мониторингу). It has been led by Viktor Zubkov from the very beginning.

Rosfinmonitoring is considered as Russia's main body for financial intelligence.

History

Under Presidential Decree No. 1263 from November 1, 2001 "On the authorized body to counteract the legalization (laundering) of proceeds of crime", the Committee for Financial Monitoring of Russia (Комитет Российской Федерации по финансовому мониторингу) was born. The Presidential Decree came into force on February 1, 2002.

Following the adoption in September 2002 amendments to the Federal Law "On Combating Legalization (Laundering) of Proceeds from Crime and Financing of Terrorism", The Financial Monitoring Committee (KFM of Russia) functions have been enhanced with countering terrorism financing.

One of the Committee's functions was to improve Russia's image in the international community: Russia at the time was in the "black list" of FATF. Through the efforts of FMK in October 2002, Russia was removed from the "black list", and in June 2003 the Committee became a member of the FATF.

On March 9, 2004, The Presidential Decree No. 314 ("On system and structure of the federal organs of the executive authority") The Committee for Financial Monitoring transformed into the Federal Service for Financial Monitoring (Rosfinmonitoring).

Until September 2007 the Federal Financial Monitoring Service was administered by the Ministry of Finance of the Russian Federation. In accordance with Presidential Decree from September 24, 2007 (№ 1274, "On Issues of the structure of federal executive authorities) The Rosfinmonitorung become subordinate directly to the Government of the Russian Federation.

According to the Decree of the President of the Russian Federation from May 21, 2012 (№ 636; "On the structure of federal executive agencies"), the Federal Service for Financial Monitoring became under the authority of the President of Russia.

Functions

The Federal Service for Financial Monitoring exercise the following powers:

• control and supervision over compliance with requirements of legislation on counteraction to legalization (laundering) of proceeds from crime and terrorist financing, involving a violation of this law;
• submission to the Government of the Russian Federation draft federal laws, normative legal acts of the President of the Russian Federation and the Government of the Russian Federation and other documents relating to matters relating to the established area of the Service;
• adoption of regulations in the established field of activity;
• collection, processing and analysis of information on transactions with money or other property subject to control;
• verification of information received on operations (deals) with monetary funds or other property, including obtaining the necessary clarifications on the information presented;
• identification signs indicating that the operation (transaction) is related to the legalization (laundering) of proceeds from crime or terrorist financing;
• control over operations in compliance with the law on countering the legalization (laundering) of proceeds from crime and terrorist financing;
• receive from the government and the Central Bank of Russia, information on matters within the purview of the Service;
• Accounting organizations performing operations (deals) with monetary funds or other property in the area of which there are no supervisors;
• formation of the list of persons against whom there is information about their involvement in extremist activity;
• publication of decisions to suspend operations with monetary funds or other assets;
• development and implementation of measures to prevent violations of the law in the sphere of combating legalization (laundering) and terrorist financing;
• decision within the competence established by the legislation of the Russian Federation, decisions about the undesirability of stay (residence) of a foreign citizen or stateless person in the Russian Federation;
• coordinating the activities of federal executive authorities in the established field of activity;
• interaction with the Central Bank of Russia on the established areas of activity;
• interaction in accordance with international treaties of the Russian Federation with the competent authorities of foreign states in the established field of activities and implementation of information exchange with them;
• interactions within the established areas of activity with public authorities, organizations, officials and citizens of foreign states;
• provision of information to law enforcement agencies that the operation (transaction) is related to the legalization (laundering) of proceeds from crime or terrorist financing, as well as the representation of relevant information at the request of law enforcement agencies;
• representation of the Russian Federation in international organizations on the established areas of activity and participation in the activities of these organizations;creation of a unified information system in the established sphere of activity;
• formation and maintenance of federal database in the specified area of activity;enforcement of storage and protection obtained in the course of the service information that constitutes state, service, banking, tax, trade secret, secret communications and other confidential information;
• development of proposals on the adoption of interagency plans and programs in the established field of activities and reporting on action taken;
• involved in developing and implementing international cooperation programs, the preparation and conclusion of international treaties of the Russian Federation on the established areas of activity;
• learning from international experience and practice on the established areas of activity;generalization of the practice of law of the Russian Federation in the sphere of counteraction to legalization (laundering) of proceeds from crime and terrorist financing, and submission to the Government of Russia proposals on improving legislation.

Structure

• Director
  • First Deputy Director
  • State-Secretary - Deputy Director
  • Deputy Director
  • Director Assistant
    • Department for Financial Investigations
    • Directorate for Technologic-Information
    • Administration and Staff
    • Information technology
    • The Office of Combating Money Laundering
    • Department of International Relations
    • The Office of Terrorist Financing
    • Legal department
    • Economic and Financial Division
    • Office of Security and Information Protection
    • Coordination and Cooperation
    • Organizational and administrative management
    • Management and macro-analysis of typology

Directors

• Viktor Zubkov (2001–2007), Head of Committee for Financial Monitoring
• Oleg Markov (2007–2008), Head of Rosfinmonitoring
• Yuri Chikhanchin (Since 2008), Director

See also

• Moneyval – European equivalent
• FINTRAC – Canada's equivalent
• FinCEN – American equivalent
• AUSTRAC – Australian equivalent.
• Egmont Group of Financial Intelligence Units
• Asia/Pacific Group on Money Laundering
• Financial Action Task Force on Money Laundering

External links

• Official website (in Russian)
• Банку России нашли надзирателя by Igor Moiseyev, Anna Inozemtseva, Svetlana Dementyeva. Kommersant, February 21, 2007.
• How Putin Uses Money Laundering Charges to Control His Opponents. The Atlantic