Risks of money laundering and terrorist financing in financial sector: Bank of Russia’s assessment
The Bank of Russia assessed risks of money laundering and terrorist financing (ML/TF) in the financial sector over the past five years and published a report on the assessment results.
This work is performed taking into consideration the recommendation of the Financial Action Task Force (FATF).
The regulator prepared a framework to assess the risk level for each sector of the financial market supervised by the Bank of Russia. The Bank of Russia analysed the likelihood of materialisation of various schemes and identified typical money laundering methods. This information helps enhance market participants’ awareness of ML/TF risks and the effectiveness of work to prevent them. Based on these data, the regulator develops measures to reduce the possible involvement of financial institutions in illegal activity.
The Bank of Russia estimated sectoral risks taking into consideration the results of national assessments of risks of money laundering and terrorist financing.