Meeting with Head of the Federal Service for Financial Monitoring Yury Chikhanchin

MIL OSI – Source: President of Russia – The Kremlin – English – Press Release/Statement

Headline: Meeting with Head of the Federal Service for Financial Monitoring Yury Chikhanchin

President of Russia Vladimir Putin: Mr Chikhanchin, we marked the 15th
anniversary of the Financial Monitoring Service yesterday. I would like to congratulate all the employees. However, we agreed that you would tell me about
the results of the service’s activities in greater detail.Head of the Federal ServiceforFinancial
Monitoring Yury Chikhanchin Chikhanchin YuryHead of the Federal Service for Financial Monitoring : Thank
you very much, Mr President, for your congratulations. Indeed, we had a staff gathering
yesterday and watched your video address. It was a gift and an assessment of our work.Looking back, 15 years ago we probably never expected to achieve such
results. You remember that our country was blacklisted back then; there were
two attempts to pass the law, but first it failed in the Federation Council and later it was vetoed by the President. Some international contracts were
terminated, we were not allowed to carry out transactions, some officials were
even arrested at the time. What I mean to say is that we managed to fix
everything. Vladimir Putin: These are very revealing numbers – as of June 15, 2006, organised crime
controlled 50 percent of private business, 60 percent of government-owned
enterprises and 80 percent of the banks.Yury Chikhanchin: That was taken from a report by the international community, when we
were being blacklisted. Yes, indeed, things were really like that.Today, of course, we have corrected
the situation. Today we have met the standards required by the FATF [Financial
Task Force on Money Laundering]. We are now active members of all international
organisations dealing with preventing money laundering and funding terrorism.We were able to assist our
neighbours from the Eurasian group, the Central Asian nations, to set up similar
systems. In fact, we have created a financial security belt. We have been actively working on drugs, our requirements have been noted at the UN venue, we are working on ISIS,
we have set up an anti-ISIS group, these are international activities.We have achieved much in raising the financial literacy of the population. I can say that about 10,000 people
engaged in banking and law enforcement have been trained in Russia. We also teach
foreigners even from such remote countries as Peru, Afghanistan, Argentina and Mongolia.We have established a networking institute uniting over 20 colleges both
in Russia and abroad, where we have our chairs and teach students. At present,
we have 200 foreign nationals studying with us. We participate in different
inter-agency commissions that have begun to operate, there over 30 of them.
These are governmental commissions that allow us to apply the legislation and achieve real results.If we look at the dynamics, the number of financial institutions in the country has decreased since 2000, which testifies to compliance with the law,
and the volume of data provided has increased. This also is a result of compliance
with the law, which we managed to achieve.Currently, to improve the quality of our work with financial organisations, we have set up the so-called “personal
office” which shows how law-abiding an enterprise is according to certain indicators,
around two dozen of them. We have resolved several issues. Firstly, we have
established information exchange with them, and secondly, the key thing is that
we have formed a system of anti-corruption relations. That means we have
separated those who do checks from the organisations being checked and monitor them
remotely. If a violation occurs, we signal them, and they rectify the situation. We have set up a compliances council where we work out major risks with
bank representatives. Here are a few graphs that show how the rights we gave to the banks to independently suspend suspicious-looking transactions are working
out. As a result, this year alone over 500,000 transactions were suspended,
accounts closed. This shows that banks have started ridding themselves of shady
schemes, cleaning out shell companies.  To be
continued.