The event chaired by the Russian Federation was traditionally held under the auspices of the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) with the organizational support from the International Training and Methodological Center for Financial Monitoring (ITMCFM) and the State University of Management.
The seminar was attended by more than 150 experts from public and private sector organizations of the EAG member states (Belarus, Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan), as well as Armenia, which is an observer to EAG. The main objective of the event is the exchange of experience and best practices of supervision in the field of combating money laundering and terrorist financing and preparing countries for mutual evaluations of compliance with the FATF standards.
"Our meeting will allow us, on the one hand, getting acquainted with innovative approaches to supervisory practices and communications with the private sector, and on the other hand – getting feedback from financial institutions on the prospects of improving the effectiveness of compliance procedures," – said in her speech Galina Bobrysheva, Rosfinmonitoring Deputy Director.
The Eurasian Group Executive Secretary Vladimir Nechaev emphasized that despite the fact that the next round of mutual evaluations in the EAG has just begun, it is necessary, wasting no time, to perform in countries comprehensive work on preparing materials that illustrate the effectiveness of work in both the public and private sectors, including the statistics collecting and preparing the most significant cases and examples.
The participants' special attention was attracted by an overview of the main results of mutual evaluations within the framework of new FATF standards that have already been completed in a number of countries, which was presented by authoritative international assessor Mr. Schaffer, Israeli Deputy State Attorney.
Of great interest were presentations on the practice of implementing such types of interaction as "Member Area" and Compliance Council (Russia). A lively discussion was provoked by information systems that allow collecting the beneficial ownership information from open sources (China), remote authentication and remote opening of bank accounts (Belarus, Russia), new approaches to the risk management when implementing Fintech projects (China, Belarus, Russia), as well as typologies for identifying persons with indicators of links to terrorism and drug trafficking (Russia).
The recommendations developed by the seminar participants will be used to further improve national anti-money laundering systems in the Eurasian region.
Recommendations made by the III International seminar "Effective supervision as a mechanism for ensuring transparency and stability of the financial system"
The seminar participants stated the importance of integrated work on improving the interaction of supervisory bodies and the private sector as a backbone component of the AML/CFT system and the importance of further development of the risk-oriented approach methodology and tools.
In the context of preparation for mutual evaluations, the Eurasian Group member countries need to pay attention to the following factors in order to increase the effectiveness of national AML/CFT systems:
1. Improving the financial institutions' internal control system with an emphasis on improving the STRs' quality and developing feedback mechanisms by utilizing the capabilities of various formats of interaction between the public and private sectors
2. Ensuring the implementation of all available mechanisms for involving representatives of non-financial professions in national anti-money laundering systems and also continuing the exchange of experience in this area within the EAG framework
3. Taking steps to ensure that the private sector is aware of ML/FT risks by means of various information exchange channels and formats
4. Implementing innovative monitoring tools for carrying out the supervisory response in accordance with the risk assessment, including remote (contactless) types of control
5. Providing for the introduction of Fintech projects into practice with simultaneous implementation of ML/FT risk management models
The participants noted that the introduction of innovative financial products and technologies into practice requires the mandatory risk modeling before changing the existing regulatory framework.
The participants expressed the need to engage the public and private sectors in a further dialogue within the EAG framework, taking into account regional specifics of the financial industry development and correspondent relationships between financial institutions in the Eurasian region.