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Business Duty Officer

The authorities proposed to increase the amount of information about the subjects of money transfers.

The authorities proposed to increase the amount of information about the subjects of money transfers.

To the outsideSenyu in the State Duma of the Russian Federation is preparing a billkt, kotoryandLimits the amount of accompanying information when transferring funds. it affects the sender and recipient. Newly introducedI prepared in Rosfinmonitoring, informs "Kommersant". This initiative was appreciated by the head of the Expert Center for Criminal Law Policy and Enforcement of Judicial Acts of "Business Russia", Associate Professor IGSU RANEPA, as well as project ambassador “Business Duty Officer” Ekaterina Avdeeva:

Recently control over money transfers was regularly tightened. New legislative changes have continued this trend.. However, it is not possible to evaluate the initiative unambiguously positively today..

The introduction of new requirements is aimed at introducing additional criteria, on which banks will detect and prevent payment transactions, aimed at transferring funds to shadow structures and money laundering, obtained by criminal means. The regulator will be able to track the frequency of such operations, their number, as well as the number and status of counterparties.

At the same time, the disclosure of a large amount of information that is not actually related to the money transfer, as from the sender, as well as the recipient, will be in conflict with the legislation on the protection of personal data.

The key concern is, will credit institutions be able to ensure the safety of data. In 2022 year we witnessed a data breach in the largest credit institutions. Victims of social engineering, false calls from banks and law enforcement agencies have become and socially unprotected segments of the population, and more legally and financially savvy citizens, including entrepreneurs.

New requirements may increase the administrative burden of banks, what will affect the cost of bank money transfer tariffs. If the amendments are adopted, credit institutions can shift the burden on consumers of financial services.
It is important to understand, then the initiative implies total control over translations: with the transfer of personal data, checking the purpose of the payment and the amount for each transfer. The Bank of Russia will establish "surveillance" for all transfers, and then, Maybe, this data will be transferred to the FTS.

Total control of the regulator over banking operations is redundant, especially when it comes to p2p transfers. There are a number of operations, which are practically of no interest to the bank. For iexample, money transfer between relatives, transfer of money as a gift between individuals, as well as money transfer, which does not generate income, for example, return debt.

Thus, the bill proposed by Rosfinmonitoring raises some concerns regarding the advisability of total control over consumers of financial services and the safety of personal data. The business community is waiting for the draft law to be submitted to the State Duma for a detailed assessment and additional adjustments.

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