BankersAccuity, the global standard for payment efficiency and compliance solutions, today announced the launch of the first domestic Politically Exposed Person (PEP) Due Diligence Database for the Russian market. Powered by WorldCompliance and used in conjunction with BankersAccuity’s screening applications, banks and corporates can now accurately identify Russian PEPs to allow for monitoring of suspicious activities such as fraud, money laundering or bribery.
The risks associated with client relationships are often not apparent and can result in higher operational costs for banks and corporates in Russia. Russian PEPs include individuals that are part of the executive, legislative or judicial branches of the government, military leaders, board of directors of state owned entities and immediate family members and known close associates of these individuals, as well as executives appointed by the president of the Russian Federation.
Following the recent Law â 115-FZ requiring domestic PEP screening in Russia, BankersAccuity created this new solution, to provide banks and corporates with detailed information on domestic PEPs to include individuals names in Cyrillic and Latin, aliases, date and place of birth, photographs, positions and other identifiers.
Used in conjunction with BankersAccuity’s PEP screening applications or 3rd party screening software, banks and corporates are able to identify and research potential customer risks, manage their risk exposure and make informed business decisions.
“Combatting money laundering and terrorist financing is high on the Russian Federation and Central Bank’s agenda with regulations of the Bank of Russia â 375-P and amendments to Law â 115-FZ now in force”, said Micah Willbrand, Payments and Risk Director, BankersAccuity. “As a result, BankersAccuity has responded by providing organisations with a tool to conduct enhanced ‘know your customer’ (KYC) due diligence against domestic PEPs to help minimise the risk of illicit financial activity in Russia”.
Focusing on the FATF recommendations to screen for domestic PEPs amendments to Federal law 115-FZ brought in new requirements. Financial institutions are now required to modify their AML/CFT systems to identify domestic PEPs accordingly, or risk facing action. Complementing this, State Duma recently presented Draft Law â 196666-6 to ‘Combat Illegal Financial Transactions’, requiring enhanced cooperation between Russian banks and government agencies.