Russia is actively using a risk-based approach for assessing the introduction of new technologies within the framework of the lawmaking process, the Deputy Speaker of the Federation Council said.
During a working visit to China, Deputy Speaker of the Federation Council Nikolai Zhuravlev attended a seminar on financial technologies and digital currencies. The event was held within the framework of the 39th plenary meeting of the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG).
The senator pointed out the importance of utilising new financial technologies. “Over the past few years, FinTech has made breakthrough progress, partly due to the conclusion of the coronavirus pandemic and other international events,” he said.
“Regrettably, we are also witnessing an increase in the number of crimes committed with the use of new technologies. The threats faced by all our countries include the use of decentralised cryptocurrencies for criminal purposes and the proliferation of online Ponzi and other fraudulent schemes,” the Deputy Speaker noted.
Nikolai Zhuravlev spoke about the active use of a risk-based approach for assessing the introduction of new technologies within the framework of the lawmaking process in Russia, where an experimental legal regime is being used to assess innovative solutions.
He pointed out that comprehensive amendments were made to the federal legislation in 2023, which defined the legal status of the digital rouble, the rules of its circulation, and the foundations for interaction between the Bank of Russia, the operators of the digital rouble platform and lending organisations and platform users.
“The platform is currently functioning in pilot mode, which will last until the end of 2024. It is being used for basic trade transactions within the country, with 13 of the country’s largest banks taking part in the first stage of its operation,” Nikolai Zhuravlev said.
The Deputy Speaker reported on the introduction of new technologies to enhance the quality and efficiency of anti-money laundering measures. One of these is the Know Your Client platform designed to streamline risk assessment approaches to suspicious transactions conducted by lending organisations’ clients.
“The amendments made in the Russian legislation this summer are aimed at modernising the existing mechanism used to prevent money fraud. Since July 2024, not only sender banks but also recipient banks will be required to check transactions for potential fraud. They will also have the ability to suspend transactions that appear fraudulent,” the senator pointed out.
Nikolai Zhuravlev also updated the audience on the issues that had been raised by his EAG colleagues at the Forum of the Parliamentarians of EAG Member States and proposed discussing the best innovative practices on the financial market at the next forum.
The plenary session was attended by Deputy Chair of the Federation Council Committee on the Budget and Financial Markets Mukharby Ulbashev, EAG Chairman Yury Chikhanchin, delegation members from EAG states and members of their parliaments.