Bank of Russia begins connecting all credit institutions to Know Your Customer platform
The regulator has invited all credit institutions to gradually connect to the Know Your Customer (KYC) platform in a pilot mode. This will allow them to make sure that their software and hardware systems are ready for full-fledged information exchange with the Bank of Russia from 1 July 2022, as provided for by law, and also to avoid technological problems.
Bank of Russia specialists will provide advice and technical support to credit institutions. The piloting of the technology that will allow the regulator to receive daily information from banks about their clients (legal entities and individual entrepreneurs) will be completed within the next few months. The Bank of Russia, in turn, will provide credit institutions with information about the level of risk for clients under the anti-money laundering law.
At the end of last year, the platform was already tested by 40 credit institutions, including the majority of systemically important banks.
The launch of the KYC platform will decrease regulatory burden on bona fide entrepreneurs and credit institutions, focusing the latter on high-risk clients whose share is less than 1% of the total number of registered legal entities and individual entrepreneurs.