Bank of Russia establishes Financial Monitoring and Foreign Exchange Control Service

The Financial Monitoring and Foreign Exchange Control Service (FMFEC Service) is to be established from 1 June 2024 on the basis of the department of the same name and the relevant regional divisions. The regulator centralises individual functions ensuring the Bank of Russia’s activity in the area of financial monitoring and foreign exchange control.

The FMFEC Service will include seven financial monitoring and foreign exchange control centres. They will be obliged to exercise control and supervision over non-bank financial institutions (NFIs) to ensure that they comply with the AML/CFT requirements as well as the foreign exchange legislation on a cross-territory basis.

Supervision over the credit institutions’ compliance with the AML/CFT requirements and the foreign exchange control legislation will be exercised by the head office of the FMFEC Service.

Supervision over the compliance of NFIs located in the Central Federal District with the AML/CFT requirements will be exercised by the Financial Monitoring and Foreign Exchange Control Centre for the Central FD which is to be established in Yaroslavl.

The FMFEC Service Centre (Nizhny Novgorod) will centralise the functions of supervision over all NFIs, regardless of their location, to ensure that they comply with the requirements of the foreign exchange legislation.

The restructuring will help the regulator increase its performance in the financial monitoring and foreign exchange control and accelerate the decision-making.

The FMFEC Service will be headed by Bogdan Shablya who is currently the Head of the Financial Monitoring and Foreign Exchange Control Department.

The Financial Monitoring and Foreign Exchange Control Department will discontinue functioning from 28 December 2024.