Posted on the website 07/19/2012

Almost eleven years have passed since the adoption of the Federal Law on Combating Money Laundering and the Financing of Terrorism, but many of its aspects still provoke questions and discrepancies. For example, requirements for customer identification cause mixed reactions from banks and payment agents. Let's consider the basic standards for compliance with identification procedures in accordance with current legislation.

Features of identification of individuals
The basis regulating the procedure for identifying bank clients is the Federal Law of August 7, 2001 No. 115-FZ “On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism” (hereinafter referred to as Law No. 115-FZ). But our task in this article is not just to quote it, but to understand what issues arise with the application of the law, for example, requirements for the identification of individuals.
The law indicates that when conducting transactions with funds or other property, the bank is obliged to identify the client. It gives preferences only to citizens wishing to make currency exchange transactions or transfers in the amount of up to 15,000 rubles. There is no need to carry out identification in this case, unless, as stated in the law, there are suspicions of money laundering and terrorist financing.
The remark about suspicion sounds somewhat absurd. Although, if a client wants to buy the currency of one state for cash, for example in the amount of 20,000 rubles, and asks that the operation be divided into two parts (10,000 rubles each), then some suspicions may still arise. In all other cases, suspicions can arise only from participants in the TV show “Battle of Psychics.” The question also remains of what constitutes a translation. Can a payment in favor of a legal entity be a transfer? In our opinion, it can, since Law No. 115-FZ does not disclose the concept of “payment” and does not provide references to other federal laws that would contain a definition of this term.
In 2004, to help credit institutions, the Bank of Russia issued Regulation No. 262-P dated August 19, 2004 “On the identification of clients and beneficiaries by credit institutions in order to combat the legalization (laundering) of proceeds from crime and the financing of terrorism” (hereinafter referred to as Regulation No. 262-P). It contains detailed explanations about the identification procedure and introduces the concept of “simplified identification”, which means conducting transactions with individuals by recording only the last name, first name, patronymic and details of the identity document.
Regulation No. 262-P defines the range of transactions for which simplified identification can be applied. These are transfers by individuals without opening bank accounts and transactions with cash foreign currency and checks. However, as in the case of identification for certain transactions worth up to RUB 15,000, there are some restrictions. Thus, simplified identification is not used when carrying out foreign exchange transactions in the amount of 600,000 rubles. or exceeding it or by the amount of its currency equivalent, since according to paragraph 1 of Art. 6 of Law No. 115-FZ, such transactions are subject to mandatory control - information on them is sent to the Federal Service for Financial Monitoring (hereinafter referred to as Rosfinmonitoring). In sub. 4 paragraphs 1 art. 6 of Law No. 115-FZ specifies what information must be contained in a message to be sent to Rosfinmonitoring: this includes information about the client, which is reflected upon his full identification.
Regulation No. 262-P contains a clause that simplified identification is carried out only if the operation is not subject to mandatory control. But bank clients, knowing that information about them will be sent to Rosfinmonitoring, can deliberately split into separate transactions those that total 600,000 rubles. and more. For such “literate” clients, Regulation No. 262-P stipulates that simplified identification is not carried out in case of evasion of mandatory control procedures or other suspicions of laundering criminal proceeds. Also, Regulation No. 262-P provides bank employees with the opportunity to conduct foreign exchange transactions in the amount of from 15,000.01 to 599,999.99 rubles. upon presentation of a driver's license by the client.
Another subtlety that deserves attention is at what stage of translation can simplified identification be carried out. Regulation No. 262-P states that simplified identification is carried out when making money transfers on behalf of individuals without opening bank accounts. What applies in this case to transfers from individuals: sending or receiving? Many may have a question: is it possible to carry out a transfer payment operation with simplified identification? In our opinion, it is possible, since in this case the order of an individual can be both about payment of the transfer and about its sending, and the transfer process can be considered as the period from its sending to its receipt.

A COMMENT

When carrying out operations that do not require full identification of the client, it is necessary to comply with the requirements that were once introduced into Law No. 115-FZ by Federal Law No. 275-FZ of November 28, 2007 and have since undergone significant changes. Thus, the latest edition of Law No. 115-FZ on individuals states the following: “A credit organization servicing the payer, when making transfers of funds on behalf of individuals without opening bank accounts at all stages of their implementation, is obliged to ensure control over the availability, completeness, transfer as part of the payment documents, the following information about the payer - an individual: last name, first name, patronymic (unless otherwise follows from the law or national custom), unique assigned transaction number (if any), taxpayer identification number (if any) or place address residence (registration) or place of stay.” The law contains a clause that the bank should not transmit the specified data as part of the payment documents if the transaction amount is less than 15,000 rubles, but no remarks have been made about simplified identification. The difficulty lies in the fact that with simplified identification it is necessary to establish the last name, first name, patronymic and details of the identity document, and according to sub. 7 clause 1.1 art. 7.2 of Law No. 115-FZ, it is also necessary to establish the address or TIN of the individual payer in order to draw up a payment order.

K. Chernobrovkina, OJSC Nordea Bank, Department of Financial Monitoring and Currency Control, Leading Economist

Thus, there are the following types of identification of individuals:
1) there is no identification;
2) simplified identification;
3) complete identification.
But it doesn't stop there.
It is quite difficult to understand and remember all the nuances. Also, the credit institution is obliged to identify foreign public officials among the individuals being served or accepted for service. No one knows exactly what this means. We can only agree that it is not possible to develop any mechanisms to identify foreign public figures, other than questionnaires. Unless you use a magic ball.
Drawing certain conclusions about the problems of identifying individuals, it can be noted that Regulation No. 262-P is a reference book for bank operational employees. The Appendix to this document indicates what information must be collected for the purpose of identifying individuals. There is nothing complicated in it for operational workers, unless the matter concerns foreign citizens. If a citizen with a foreign passport contacts the bank to carry out a transaction that requires full identification, the operational employees need to additionally establish documents that give the foreigner the right to legally stay on the territory of the Russian Federation.
Appendix 1 to Regulation No. 262-P contains a list of them. This is a visa, residence permit, temporary residence permit and other documents confirming, in accordance with the legislation of the Russian Federation, the right of a foreign citizen or stateless person to stay (reside) in the Russian Federation.
The Ministry of Foreign Affairs’ response to the ARB’s request regarding the entry of foreign citizens into the Russian Federation has been published on the official website of the Association of Russian Banks. It contains a list of countries and opposite each country there is information about the visa regime. The question arises: what to do if, according to the requirements of the Ministry of Foreign Affairs, a foreign citizen located on the territory of the Russian Federation must have a visa, but to the bank for an operation that requires full identification, he provides a passport in which the Russian visa is not marked?
In our opinion, a bank employee is not an employee of the migration service, customs or internal affairs bodies. The bank only needs to establish the data that is prescribed in Law No. 115-FZ and Regulation No. 262-P. The key word here is “establish”, so if a bank employee did not find a visa stamp in the passport of a citizen of a state with which Russia has a visa regime, or a citizen of a state not included in the customs union with Russia did not have a migration card, then you just need to obtain written explanations from a potential bank client about the reasons for the absence of these documents and place them in the client’s file.
Of course, you should not allow abuse and serve a client without a passport, having received written explanations from him about his absence. In the absence of a visa or migration card, each case must be considered individually and, before carrying out the operation, the client’s explanations must be studied in detail.

A COMMENT

The domestic “anti-legalization” law was created and amended on the basis of international standards on combating money laundering, the financing of terrorism and the financing of proliferation of weapons of mass destruction - the Recommendations of the Financial Action Task Force on Money Laundering (FATF). And the FATF recommendations note that financial institutions should be required to use additional measures in relation to foreign public officials, in addition to applying normal customer due diligence measures. In Law No. 115-FZ, this norm is implemented in Art. 7.3. And of “particular interest” is the clause that a credit institution is obliged to take reasonable and accessible measures in the current circumstances to identify foreign public officials among individuals being served or accepted for service. Due to the fact that there are no lists of foreign public persons, credit institutions are currently developing their own rules and procedures for identifying them. As a rule, it all comes down to a banal customer survey.

A. Stashkov, OJSC "SMP Bank", Department of Methodology and Control of the Financial Monitoring Service, Deputy Head

The requirements of Law No. 115-FZ echo the requirements of the Federal Law of December 10, 2003 No. 173-FZ “On Currency Regulation and Currency Control.” Thus, in accordance with currency legislation, Russian citizens are not always residents, and foreign citizens are non-residents. If a foreign citizen has a residence permit in the Russian Federation, he, according to domestic currency legislation, becomes a resident. Likewise, citizens of Russia who have a residence permit in other states or another mark in their passport about permanent residence in another state are non-residents. Big problems arise for bank operational employees in interpreting the status of the “residence permit” document. Please note that it is not an identification document of a citizen, with the exception of stateless persons who do not have other documents. In all other cases, a “residence permit” only confirms the legal right of a citizen to stay on the territory of the Russian Federation, that is, it is equivalent to a visa.
If you take out the page with the visa stamp from your passport and, presenting it, ask to carry out a banking transaction, then it is clear that the response will be a refusal from the bank operational employees. But a “residence permit” looks more impressive than a visa and is somewhat reminiscent of a passport, so there is a great temptation to carry out a banking transaction with it without requiring a passport. But if the “residence permit” indicates that its bearer is a citizen of any country, then to conduct a banking transaction he should be required to have a passport.
Regulation No. 262-P defines a large list of documents with which citizens can perform banking transactions, which creates certain problems for bank employees. If the client makes one-time payments, it does not matter what document he applied to the bank with. It is more difficult with clients with whom the bank has long-term cooperation. These can be individuals with deposits, current accounts, bank cards, safe deposit boxes, etc.
A copy of the document with which he first applied to the bank is entered into the client’s dossier questionnaire, for example, a copy of the passport of a citizen of the Russian Federation. On the second visit to the bank, the client has the right to present a foreign passport, and on subsequent visits - a military ID. Regulation No. 262-P does not contain any reservations about in what cases a particular document can be provided to the bank for identification when conducting banking operations. This increases the risk of committing fraudulent transactions, since attackers can take advantage of this relaxation and, knowing only the last name, first name and patronymic of a bank client, produce a fake identification document in his name, but different from the one that is already in the client’s banking file. For example, the dossier contains information about the internal passport of a citizen of the Russian Federation, and fraudsters will come to make a debit transaction on a bank account with a military ID, which, unlike a passport, will not be difficult to forge.
Often, to carry out a complete identification, there is not enough data that cannot be established in the usual way. For example, there is no registration in a general civil or foreign passport or, as mentioned above, the foreign client does not have a migration card. What to do in this case? There is no definite answer, since according to the law the bank needs to establish this data, but in what way it is not indicated. In our opinion, it is wrong to refuse a client to perform a transaction just because he does not have a migration card. Therefore, in order to comply with legal requirements, it is necessary to develop some mechanisms for establishing information about the client. For example, if there is no registration in the identity document, then the client could provide a certificate of ownership of the property or a lease agreement. But it is clear that no one carries such documents with them, and it is also unprofitable for the bank to lose customers. Therefore, the client can, in free written form and signed by him, provide information about his place of residence or the reasons for the absence of a migration card. His explanations may be kept in his file or in the bank documents of the day, confirming the fact that the bank has taken steps to establish identification.

01 August 2019, 18:21

Currently, the most promising segment of the microfinance market is online (on-line) lending. Its share in the total volume of microloans issued is only increasing every year. But, from March 29, 2016, the entire market of microfinance organizations (MFO) was divided by the legislator into two groups: microcredit companies (MCC) and microfinance companies (MFC). This division introduced significant changes and restrictions for online MFOs, primarily in terms of the possibility of conducting remote (online) identification of borrowers without visiting the MFO office. Let's try to figure it out Does an online MFO have the right to carry out such identification? subject to the provisions Federal Law of 07.08.2001 No. 115-FZ"On combating the legalization (laundering) of proceeds from crime and the financing of terrorism" (hereinafter referred to as Federal Law No. 115)?

IMPORTANT! This The article is valid until September 30, 2019. As of October 1, 2019, amendments to Federal Law No. 115 come into force, which change the procedure for remote identification of MFOs of their clients (borrowers), and therefore This article will be updated.

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On March 29, 2017, changes to Federal Law of July 2, 2010 No. 151-FZ“On microfinance activities and microfinance organizations” (hereinafter referred to as Federal Law No. 151), according to which a microfinance organization (MFO) is divided into a microcredit company (MCC) and a microfinance company (MFC). In fact it's divided all microfinance organizations into those who can issue online loans and those who are prohibited from doing so.

In accordance with paragraph 1 of Art. 2 Federal Law No. 151:

Microfinance organization (MFO)- a legal entity that carries out microfinance activities and information about which is entered into the state register of microfinance organizations in the manner prescribed by Federal Law No. 115. Microfinance organizations can carry out their activities in the form of a microfinance company or a microcredit company.

Microcredit company (MCC)- type of microfinance organization carrying out microfinance activities, taking into account the established parts 1 and 3 of Art. 12 Federal Law No. 151 restrictions, which has the right to attract funds from individuals who are its founders (participants, shareholders), as well as legal entities, to carry out such activities.

Microfinance company (MFC)- type of microfinance organization carrying out microfinance activities, taking into account the established parts 1 and 2 of Art. 12 Federal Law No. 151 restrictions that meet the requirements of Federal Law No. 151 and regulations of the Bank of Russia, including to its own funds (capital), and has the right to attract funds from individuals, including those who are not its founders (participants, shareholders), subject to the restrictions established by clause 1, part 2, art. 12 Federal Law No. 151, as well as legal entities.

In details What is the difference between MCC and IFC? We previously wrote in one of our articles posted on. Now let's look at the fundamental difference between MCC and MFC in terms of remote identification borrowers when providing online loans within the framework of fulfilling the requirements of Federal Law No. 115.

In accordance with clause 1.5-2 of Art. 7 Federal Law No. 115 only a microfinance company (MFC) has the right to assign based on the contract credit organization identification or simplified identification client - individual, as well as identification of the client’s representative, beneficiary and beneficial owner in order to conclude a consumer loan (loan) agreement with the specified client, provided to the client - an individual through the transfer of funds in accordance with the legislation on the national payment system.

Requirements for microfinance companies (MFCs), which in accordance with clause 1.5-2 of Art. 7 Federal Law No. 115 may entrust credit institutions with identification or simplified identification, established By Directive of the Bank of Russia dated July 20, 2016 No. 4078-U"On the requirements for credit institutions that may be entrusted with identification or simplified identification, as well as for microfinance companies that may entrust credit institutions with identification or simplified identification" (hereinafter - Central Bank Directive No. 4078).

As follows from paragraph 3 of Central Bank Directive No. 4078, microfinance company (MFC), which in accordance with clause 1.5-2 of Art. 7 Federal Law No. 115, on the basis of an agreement, may instruct credit institutions to carry out identification or simplified identification, must meet the following requirements:

1. carrying out activities in the form of a business company;
2. carrying out microfinance activities for at least 2 (two) years from the moment information about it is entered into the state register of microfinance organizations (MFOs);
3. membership in a self-regulatory organization (SRO) in the financial market;
4. absence in the Unified State Register of Legal Entities (USRLE) of a record of unreliable information about such a microfinance company.

Thus, in order to entrust a credit institution with identification or simplified identification of a client - an individual for the purpose of combating the legalization (laundering) of proceeds from crime and the financing of terrorism (AML/CFT), it is necessary not only to have the status of an IFC, but also to comply with all of the above requirements.

Please note that Federal Law No. 115 does not contain separate rules in relation to microcredit companies (MCC). However, Federal Law No. 115 uses a separate term - simplified client identification. Let's look at it in more detail.

In accordance with Art. 3 Federal Law No. 115:

Identification is a set of measures to establish certain information in Federal Law No. 115 about clients, their representatives, beneficiaries, beneficial owners, authentication this information using original documents and/or appropriately certified copies. For example, for individuals, such a document will be a passport or other identity document.

Simplified client identification- an individual (hereinafter - simplified identification) - carried out in cases established by Federal Law No. 115, a set of measures to establish in relation to a client - an individual surname, name, patronymic (unless otherwise follows from the law or national custom), series and number of an identity document, and confirm the accuracy of these information in one of the following ways:

1. using original documents and (or) duly certified copies documents;
2. using information from information systems of public authorities, the Pension Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund (MHIF) and (or) the state information system determined by the Government of the Russian Federation;
3. using unified identification and authentication system when using an enhanced qualified electronic signature (ECES) or a simple electronic signature (PES), provided that when issuing a simple electronic signature key the identity of an individual is established during a personal reception.

In accordance with clause 1.11 of Art. 7 Federal Law No. 115 simplified identification of a client - an individual can be carried out upon conclusion consumer credit (loan) agreement taking into account the features established by clause 1.12-1 of Art. 7 Federal Law No. 115, provided that all calculations are carried out exclusively in cashless form on accounts opened in Russian credit organization.

Clause 1.12 art. 7 Federal Law No. 115 establishes that simplified identification of a client - an individual is carried out in one of the following ways:

1. through personal representation by a client - an individual, original documents and (or) duly certified copies of documents;
2. through referral by a client - an individual credit organization (CO), a non-state pension fund (NPF), a professional participant in the securities market (PSMP), a management company of an investment fund, a mutual investment fund or a non-state pension fund (MC UIF), including in electronic form, the following information about yourself: surname, name, patronymic (unless otherwise follows from the law or national custom), series and number of the identity document, insurance number of the individual personal account (SNILS) of the insured person in the personalized accounting system of the Pension Fund of the Russian Federation, and (or) taxpayer identification number (TIN), and (or) number of the compulsory health insurance policy (CHI) of the insured person, as well as subscriber number client - an individual using the services mobile radiotelephone communications. From clause 1.13 of Art. 7 Federal Law No. 115 it follows that if received, including using a unified system of interdepartmental electronic interaction (SMEV), from the information systems of government bodies, the Pension Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund (MHIF) and (or) state information system defined by the Government of the Russian Federation, confirming the coincidence of the information specified in paragraphs. 2 clause 1.12 art. 7 Federal Law No. 115 ( that is, the information specified in this paragraph), with information in the specified information systems, as well as when the client - an individual confirms the receipt of information on the mobile radiotelephone subscriber number specified by him, ensuring the passage of simplified identification (including the possibility of using an electronic means of payment), the client - an individual is considered to have completed the simplified identification procedure in order to provide the client with a consumer loan (loan), taking into account the features established by clause 1.12-1 of Art. 7 Federal Law No. 115;
3. through passage by a client - an individual authorization in the unified identification and authentication system (USIA) using an enhanced qualified electronic signature or a simple electronic signature, provided that when issuing a simple electronic signature key the identity of an individual is established during a personal meeting, indicating the following information about yourself: last name, first name, patronymic (unless otherwise follows from the law or national custom), insurance number of the individual personal account (SNILS) of the insured person in the personalized accounting system of the Pension Fund of the Russian Federation. In fact, the ESIA is used for registration and authorization on the State Services portal. This means that the borrower must first, before concluding a loan agreement, registered on the State Services portal. To do this, as part of the initial registration on the State Services portal, you need personal presence of the borrower.

The first and third methods of simplified identification Not suitable for issuing online loans, as they require personal presence of the borrower, which does not allow remote (remote) identification.

Microfinance organizations (MFOs), including MCCs and MFCs, are NOT entitled to use the second method of simplified identification, since microfinance organizations (MFOs) are not included by the legislator in the list of organizations to which individual clients can send information about themselves.

But, seconda method for simplified identification of borrowers will be legal if the IFC, in accordance withclause 1.5-2 art. 7 Federal Law No. 115 will instructbased on the contractcredit organization (CO) carrying out identificationor simplified identification borrowers - individuals.

At the same time, the use of the second method of simplified identification by the ICC will in any case be illegal, since such a right is Federal Law No. 115 not provided for MKK. However, despite this, the majority of online MFOs in the form of MCCs carry out remote identification of borrowers using the second method, thereby violating the requirements of Russian legislation in the field of AML/CFT and taking on the risk of a supervisory response from the Bank of Russia.

In conclusion, we note that according to clause 1.12-1 of Art. 7 Federal Law No. 115 provisions clauses 1.11 and 1.12 art. 7 Federal Law No. 115 applies to consumer credit (loan) agreements, the amount of which does not exceed 15,000 rubles or an amount in foreign currency equivalent to 15,000 rubles provided to a client - an individual through translation funds in accordance with the legislation on the national payment system in favor of the client - an individual.

Thus, in accordance with the current legislation of the Russian Federation carry out remote identification and issue online loans without the borrower visiting the MFO office Only microfinance companies (MFCs) CAN by means of an order on the basis of an agreement with a credit institution, identification or simplified identification of a client - an individual. Wherein microcredit companies (MCCs) DO NOT HAVE such a right.

In the case of a microcredit company (MCC) to provide an online loan in order to comply with the requirements of Russian legislation the borrower needs to visit the MCC office at least 1 (one) time for its initial identification. Very often, in the personal lending market, identification is carried out by MCC employees themselves, visiting the borrower’s address. This identification method allows you to comply with the requirements of Russian legislation in the field of AML/CFT, significantly reduce MCC costs and not open additional service offices.

Currently, the list of information requested by banks is comparable only to the data required from companies and individual entrepreneurs by the tax inspectorate. BUKH.1S figured out what documents banks can legally request, and what consequences await clients for failure to provide them.

What documents do banks require based on 115-FZ?

Banking activities are regulated by a huge number of various laws and regulations. One of such documents is Federal Law No. 115-FZ dated August 7, 2001 “On combating the legalization (laundering) of proceeds from crime and the financing of terrorism.”

In pursuance of this law and referring to its own norms, banks require a lot of various documentation from clients. Clients sometimes feel that the requested data has nothing to do with the activities of banks and does not affect the interests of the state. But banks think differently. For example, banks, checking the purity of transactions, request documents under standard agreements that organizations have been entering into for many years. According to clients, such bank requirements are, at a minimum, strange, and, at a maximum, contrary to current legislation. In particular, for example, in cases where the requested information constitutes information protected by law.

Cheat sheet on the article from the editors of BUKH.1S for those who don’t have time

1. Currently, banks require a lot of various documentation from clients, checking the purity of transactions.

2. To identify not only the client himself, but also to check and record all transactions made by him, which seem suspicious to banks, is required by the Federal Law of August 7, 2001 No. 115-FZ “On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism "and Regulations of the Bank of Russia dated October 15, 2015 No. 499-P "On identification of clients...".

3. Clause 14 of Article 7 of Law No. 115-FZ establishes the obligation of clients to provide information necessary for banks to comply with legal requirements.

4. An analysis of the Federal Law of August 7, 2001 No. 115 and the Bank of Russia Regulations of October 15, 2015 No. 499-P allows us to come to the conclusion that the right of banks to request documentation is practically unlimited in general.

Indeed, sometimes banks require the provision of personal information of employees of organizations, balance sheets, information on taxes paid, etc. Of course, such requests cause a lot of indignation among clients.

As we can see, the list of documentation is very extensive, and in some cases it may be even longer. Moreover, sometimes too little time is given to prepare and submit these documents, which leads to even greater dissatisfaction of clients and their justifiable indignation.

In this regard, a logical question arises: do banks have the legal right to demand all these documents from clients?

Are banks' demands for documentation legal?

As the banks themselves explain, they request documents in such volumes for a reason. This is not their personal whim, but the requirements of the Federal Law of August 7, 2001 No. 115-FZ “On Combating the Legalization (Laundering) of Income...” and Regulations of the Bank of Russia dated October 15, 2015 No. 499-P “On identification of clients...”.

These legal regulations oblige credit institutions to identify not only the client himself, but also to check and record all transactions made by him that seem suspicious to banks. And if a client can be verified at the stage of opening a bank account for him, then the bank can check the purity of the transaction only at the stage of making cash payments.

What exactly does these regulations say? For example, Art. 7 of Federal Law No. 115-FZ dated 08/07/2001 states that when identifying a client, his representative, beneficiary, as well as updating information about them, banks have the right to require the presentation of relevant documents.

Their list includes identification documents, constituent documents, documents on state registration of a legal entity (individual entrepreneur). The bank may also request other documents necessary to comply with legal requirements.

And clause 14 of Article 7 of Law No. 115-FZ establishes the obligation of clients to provide information necessary for banks to comply with legal requirements.

Appendix 2 to Bank of Russia Regulation No. 499-P contains subparagraphs 2.7 – 2.9, which specify the powers of credit institutions to request documentation and information from clients.

Yes, pp. 2.7. establishes that the bank has the right to demand from its clients information and documents about the financial position, including financial statements and tax returns. At the same time, the credit institution, in its internal control rules, independently determines the number and types of documents that it uses to determine the client’s financial position.

In paragraphs 2.8. it is indicated that the bank may request information about the client’s business reputation and reviews of him from other organizations that have business relations with him. In its internal control rules, a credit organization can also independently determine another type of documents that can be used to determine the client’s business reputation.

Finally, paragraph 2.9. allows you to request information about the sources of origin of funds and other property of the client. The list of such information is again not exhaustive.

An analysis of the Federal Law of August 7, 2001 No. 115 and the Bank of Russia Regulations of October 15, 2015 No. 499-P allows us to come to the conclusion that the right of banks to request documentation is practically unlimited in general. At least, the legislation does not contain any such restrictions, nor does it contain an exact list of documents that must be provided at the request of a credit institution.

It turns out that banks have the right to request absolutely any documentation and in any volume. Is it really? BUKH.1S asked the head of the department of legal support for professional stock market participants of the FINAM Group of Companies to clarify the situation Sergei Volodkin.

What documents can banks request to comply with the requirements of the anti-money laundering law?

Any documents that banks will include in their internal control rules. And usually this is an open list, because... It is initially impossible to determine the complete list of documents that may be needed in order to determine whether a given operation is carried out for the purpose of laundering criminal proceeds or not. Those. any documents that may be required to analyze a specific transaction or the client’s activities in general.

Can banks require information containing personal data of third parties? For example, personal data of employees of a bank client company?

By law, banks are required to identify the client’s representative (including the sole executive body), the client’s beneficiary. And also take reasonable and accessible measures in the current circumstances to identify the beneficial owner. If these are all individuals (and the beneficial owner is only an individual), and it does not matter whether they are employees of the company or not, then banks are required to require information containing their personal data.

What deadlines for submitting the documents requested by the bank are established by law?

According to some sources, the deadlines have been set; according to others, the regulations say that banks set them themselves. The Central Bank considers the normal period to be 3-7 days; banks usually set such terms. If the bank sets long deadlines, the Central Bank believes that this was done specifically to help the client evade the procedures of Federal Law No. 115 of 08/07/2001.

What happens if you do not provide the information requested by the bank?

Failure by the client to provide information necessary for the credit institution to comply with the requirements of the law may be grounds for refusal to carry out the operation. If the bank has already refused two or more times, it is obliged to terminate the agreement and close the client’s account. The organization automatically ends up on the blacklist, which the Central Bank sends to banks, and there is a high probability that no other bank will open an account for such an organization.

The bank can also disable the remote service system (Internet banking). Then the client will be able to manage the account only by submitting paper payments, which is not very convenient when the client is, for example, in Vladivostok, and the bank is in Moscow. And even if the client brings such a paper payment, the bank will always be able to exercise the right to refuse to carry out the transaction.

So, it turns out that banks not only have the right to demand documents from clients, but this is their responsibility. If this is not done, the bank may be fined a significant amount. The liability of banks is established by Article 15.27 of the Code of Administrative Offenses of the Russian Federation “Failure to comply with the requirements of legislation on combating the legalization (laundering) of proceeds from crime and the financing of terrorism.”

Under this article, fines can reach 1 million rubles, and the bank’s activities can be suspended for up to 90 days. As a result, the credit institution's license to carry out banking operations may be revoked.

It is clear that banks are trying to protect themselves and are trying to thoroughly check the payments made by clients. It turns out that sending letters to clients to provide information is a common practice of credit institutions related to compliance with the laws of the Russian Federation and the requirements of the Central Bank of Russia.

The fact that banks can request an almost unlimited amount of documents from their clients was confirmed by BUKH.1S in the Association of Russian Banks (ARB).

As the chief specialist of the legal department of the ARB told us Veronica Kinsburskaya, the law does not regulate the question of what documents and information are subject to demand from individuals and legal entities in order to verify their non-involvement in extremist activities or terrorism. Also, the law does not determine the procedure for credit institutions to conduct inspections of the activities of their clients. What exactly to request and how exactly to check clients, the bank decides independently:

The exact list of documents and information required from the client, the procedure for verifying the client, including the procedure and timing for submitting the requested documents to the bank, as well as the procedure for recording the information received from the client are established by each credit institution independently. They are prescribed in the internal control rules.

If the bank suspects that any transactions are carried out for the purpose of money laundering or terrorist financing, the bank may request from the client detailed information about the client’s business objectives, business reputation, the purpose of a specific transaction and the sources of origin of the money.

According to paragraph 2 of Art. 6 of Federal Law No. 115-FZ, a transaction with funds is subject to mandatory control if at least one of the parties is an organization or individual in relation to which there is information about their involvement in extremist activities or terrorism. But at the same time, all other suspicious transactions are also subject to control.

An audit of the client’s activities and transactions may be carried out if bank employees have subjective suspicions that a specific operation is being carried out for the purpose of money laundering or terrorist financing. The corresponding right is granted to banks in clause 3 of Art. 7 of Federal Law No. 115-FZ.

If the client fails to provide the information necessary for verification, the bank may block the account, suspend the debit transaction, refuse to enter into an agreement, or terminate the bank account (deposit) agreement with such client.

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Those who suffer in this whole situation, of course, are bona fide clients who conduct trading or production activities and are in no way connected with terrorism and money laundering. Often the volume of information requested by the bank turns out to be so large that it is physically impossible to submit documents on time.

What should bank clients do in such situations? This is the advice given by the general director of the Profdelo consulting center. Tatiana Nikanorova:

Banks must take appropriate measures to prevent illegal transactions. We understand that for this they can request almost any documents and in any quantity. Accountants are familiar with banks that overcharge. If the documents are not submitted in full, the bank may close the current account. And here lies the catch: closing an account on this basis often implies an increased tariff for withdrawing funds from a current account to another bank. This is up to 10% of the amount. You can, of course, complain to the Central Bank of the Russian Federation, and it will determine whether the request from the bank was legal or not. My recommendation for “white” companies: if you receive an excessive request, urgently withdraw money from such a bank and open an account elsewhere.

It can be concluded that clients will have to comply with banks’ demands for the provision of documents and information. And if there is such a possibility, it is better to send the documents in full and on time. If such an opportunity is not available, and the bank demands more and more often, it is wiser not to wait for the account to be closed and switch to servicing in another credit institution.

Many subjects of the Federal Law of August 7, 2001 No. 115-FZ “On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism” (hereinafter referred to as Federal Law No. 115-FZ) are familiar with the term “identification” and the verification procedure client in order to combat the legalization (laundering) of proceeds from crime and the financing of terrorism (hereinafter - AML/CFT), however, not all entities have still understood another similar term “simplified identification”. We at U-Piter Consulting are often contacted with questions about the differences between regular identification and simplified identification and which subjects of Law No. 115-FZ have the right to carry it out. For this reason, I decided to write a short article on this topic.

Your employees can also undergo training in our company on the program “Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism” with the issuance of a certificate of the established form. Our company is accredited by the International Training Center for Financial Monitoring (Moscow) and conducts AML/CFT/CFT training . The training is conducted remotely (online course), so you can take part in the webinar while at your work or home computer.

According to 115-FZ, transactions worth at least 600 thousand rubles and transactions that have signs of an unusual transaction are subject to control. Violation of the provisions of the Federal Law may lead to blocking of client accounts and revocation of the license of the financial institution.

The main goal of Federal Law (FZ) N 115-FZ of August 7, 2001 “On combating the legalization (laundering) of proceeds from crime and the financing of terrorism” is to protect the rights of citizens and the state.

This Federal Law regulates the relations of individuals and companies that are subjects of the law with government bodies that control monetary transactions in order to prevent the inclusion of funds in illegal circulation.

Who is covered by Federal Law 115-FZ

Table 1. Subjects of 115-FZ

Category	Subjects
Individuals	Russian citizens.
	Foreign citizens.
	Stateless persons.
Organizations and individual entrepreneurs	Credit organizations.
	Securities market participants.
	Insurance companies.
	Federal postal service.
	Pawnshops and companies engaged in the purchase of precious metals, precious stones and products made from them.
	Organizers of lotteries, sweepstakes, etc.
	Management companies of investment, non-state pension and mutual funds.
	Involved in real estate transactions.
	Consumer cooperatives.
	Microfinance organizations.
	Telecom operators, etc.
	Foreign structures.

Actions aimed at implementing the law

Actions aimed at implementing the provisions of the law include mandatory and internal controls, as well as a ban on reporting measures taken to comply with it. The exception is information about the status of the account, its blocking, or in the conduct of operations, as well as the need to provide documents.

Operations control

Transactions in rubles and foreign currency that meet certain criteria are subject to control. They are divided into transactions subject to mandatory control and transactions that have signs of an unusual transaction.

Table 2. Operations subject to mandatory control

Sum	The essence of the operation
≥600 thousand rubles	Cash transactions.
	Withdrawal or crediting to a legal account. persons with cash, if this is not consistent with the nature of his business.
	Purchase or sale of physical face of cash currency.
	Purchase or sale of physical face securities for cash.
	Cashing out physical face of a bearer check received from a non-resident.
	Exchange of banknotes of one denomination for another.
	Adding physical person in the authorized capital of the company cash.
	Receipt or transfer of funds to a person registered in the territory of a state that does not adhere to the FATF recommendations, or who has an account with a credit institution located in this territory.
	Operations on accounts and deposits.
	Transactions with movable property (precious metals, jewelry, insurance payments, leasing, etc.).
	Supplies for defense orders.
≥ 3 million rubles	Real estate transactions.
≥ 100 thousand rubles	Receipt by a non-profit organization of funds and property from foreign states and organizations or transfers to them.
≥ 10 million rubles	Operations of organizations of strategic importance for the defense industry.
Regardless of the amount	One of the parties to the deal is a person suspected of participating in extremist activities.

Note. A complete list of signs of an unusual transaction is contained in the Appendix to Bank of Russia Regulation No.375-P dated March 2, 2012 The most common of them are: the confusing or unusual nature of the transaction, which has no obvious economic meaning, and the inconsistency of the transaction with the goals of the company. If the transaction falls under one of the items on the list, the client is obliged to provide the bank with documents confirming the purity of the transaction.

Key responsibilities of financial institutions

• Identification of clients and their beneficial owners, according to certain criteria.
• Update previously received information.
• Recording and providing information to Rosfinmonitoring.
• Blocking of funds and other property.
• Checking the presence among clients of persons in respect of whom a decision has been made to freeze accounts.
• Data storage.

Identification of clients and their beneficial owners

Financial institutions are required to identify the person who contacts them using certain criteria.

Table 3. Identification criteria

Updating previously received information

Identification information must be updated at least once a year, and if there is any doubt about its relevance and truth - within seven business days.

Non-state pension funds must update information about the insured at least once every three years, but if there are suspicions that the information is unreliable, they are required to double-check it within seven working days.

Recording and submitting information to the authorized body

The responsibilities of organizations carrying out transactions with funds include recording and providing the authorized body within three days with the following information on transactions subject to mandatory control:

• Type of operation.
• Reasons for doing it.
• Date of operation.
• Sum.

In addition, financial organizations are required to provide information upon requests from the authorized body in the manner established by the Central Bank of the Russian Federation.

Blocking accounts

Financial institutions are obliged to provide other property of clients included in the list of extremists and terrorists. The blocking must occur immediately, but no later than one working day from the moment of changes to the list of extremists. The presence of its clients in it must be checked at least once every three months.

Data storage

A legal file containing documents necessary for identification must be retained for five years from the date of termination of the relationship with the client.

Rights of financial organizations

If there are suspicions that the client’s activities may be illegal, or he is in contact with persons or organizations related to such activities, the credit institution has the right:

• Refuse him to conclude a banking service agreement in accordance with the internal control rules.
• Terminate the contract if during the year the client was refused to carry out transactions at least twice due to his failure to provide information confirming the purity of the transaction.
• Refuse to carry out an operation on behalf of the client for five working days.

Limitation of rights of credit institutions

Banks are prohibited from opening accounts without the personal presence of the client or his legal representative, as well as without providing them with the information necessary for identification. This restriction does not apply in cases where the client or his representative has previously been identified.

It is also prohibited to open accounts in cases where there is a suspicion that this account may be used by the client in money laundering operations.

Additional measures applied by Rosfinmonitoring

Rosfinmonitoring may decide to freeze all accounts of an individual or legal entity if there is reasonable suspicion of his participation in terrorist activities or he is included in the list of persons participating in it.

The decision to block accounts is immediately posted on the Internet, on the Rosfinmonitoring website. Restrictions can be lifted in court.

Phys. persons to whom such measures were applied may be assigned a monthly allowance in the amount of ten thousand rubles.

Property claims of third parties arising as a result of blocking accounts can be satisfied through the court. Legal costs in this case will be reimbursed from funds in the defendant’s blocked accounts or other property.

Responsibility for violation of Federal Law 115-FZ

Violation of the provisions of this law by a financial institution may result in the revocation of its license. Persons guilty of violating the law are liable in accordance with the Civil, Administrative and Criminal Codes.

In conclusion, a video about how to protect your current account from blocking, according to the latest edition of 115-FZ.