22.01.08

The Federal Financial Monitoring Service was commissioned to follow financial operations of foreign politicians and officials of all levels who make monetary transactions in Russia. The scope will include not only public officials, but also their relatives and even closest business partners.

An updated version the law “On counteracting the legalization of the proceeds from crime” came into force on January 15, 2008. The law obligates Russian banks, pawnshops, insurance companies, etc., to execute special control over financial sources and transactions of foreign public officials and their relatives. Russian organizations must use their own resources to detect foreigners among their clients.

Entering into financial relations with public foreign officials is only permitted with written approval of organization’s director or his deputy. Russian businessmen must also, to the best of their abilities, clarify sources of foreigner’s financial means and property.

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