The Bank of Russia has announced the establishment of the Financial Monitoring and Foreign Exchange Control Service (FMFEC Service), effective June 1, 2024. This new service will be formed from the existing department and relevant regional divisions, centralizing functions related to financial monitoring and foreign exchange control.
The FMFEC Service will consist of seven financial monitoring and foreign exchange control centers. These centers are tasked with overseeing non-bank financial institutions (NFIs) to ensure compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) requirements, as well as foreign exchange legislation across different territories.
Supervision over credit institutions' adherence to AML/CFT requirements and foreign exchange control legislation will be managed by the head office of the FMFEC Service. Specifically, NFIs located in the Central Federal District will be supervised by a newly established center in Yaroslavl.
Additionally, a centralized FMFEC Service Centre in Nizhny Novgorod will oversee all NFIs' compliance with foreign exchange legislation requirements, regardless of their location.
This restructuring aims to enhance the regulator's performance in financial monitoring and foreign exchange control while expediting decision-making processes.
Bogdan Shablya, currently serving as Head of the Financial Monitoring and Foreign Exchange Control Department, will lead the new FMFEC Service. The existing department will cease operations on December 28, 2024.