Rosfinmonitoring: Virtual Currency Regulation Has Been Strengthened, AML System Continues to Operate Even After FATF Blacklisting

On October 17, the Russian Federal Financial Supervisory Service (Rosfinmonitoring) emphasized that its anti-money laundering (AML) system will continue to function effectively even if the Financial Action Task Force (FATF) decides to blacklist Russia. The issue of virtual currency regulation was mentioned in previous assessments, but Rosfinmonitoring insisted that these issues have already been resolved.

According to TASS, the regulator said, “The Russian Federation has improved its rating on three FATF recommendations, and only one has been downgraded to ‘partially compliant’ due to insufficient legislative regulation of the circulation of virtual currencies.”

However, Rosfinmonitoring noted that since these assessments, Russia has passed two federal laws to strengthen its digital currency regulatory framework. The agency added: “Since then, the Russian Federation has passed two federal laws regulating the circulation of digital currencies.”

The FATF is said to be an intergovernmental organization that sets global standards for anti-money laundering and combating terrorist financing. Whether or not Russia will be blacklisted will be discussed at the October 21-25 FATF plenary session.