Action Plan to enhance transparency and prevent misuse of companies and other legal entities
In accordance with the FATF Standards and the commitment made by the Russian Federation at the G8 Leaders summit Russia reforms its system to ensure transparency of the beneficial ownership of companies, other legal entities and legal arrangements, and to prevent tax evasion, including through the use of offshore jurisdictions. In order to prevent and detect the misuse of companies and other legal entities and legal arrangements the Russian Federation has already substantially strengthened its national legislation by introducing additional supervisory measures. Federal Law № 134-FZ «On Amendments to Several Legislative Acts of the Russian Federation» was adopted for this purpose. To this end Russia is committed to taking the following actions:
- The Government Act on raising standards of fiscal accountability for the VAT will be adopted.
- The Government Act on establishing policies for the formation and maintenance of the public register of natural persons deprived of their right to establish and head legal entities for their having committed economical offences will be adopted.
- The Government Act on raising fir and proper standards of the financial institutions employees will be adopted.
- The document on strengthening the federal governmental AML/CFT supervision will be adopted.
- The Government Acts on improving mechanisms of freezing (blocking) of the assets of persons associated with terrorism will be developed.
- For the purpose of identifying the beneficial owners the Governmental Acts regulating requirements to the internal control rules developed by financial institutions conducting operations with funds or other assets will be amended to introduce the obligation to identify all beneficial owners of legal entities and to strengthen the CDD measures.
- Higher quality of compliance practice of lawyers, notaries and other persons providing legal and accounting services will be ensured.
- Effective exchange of information on beneficial ownership between FIUs, state authorities and financial institutions will be enhanced.
In addition to that the Russian Federation will conduct in 2014 the national assessment of money laundering, terrorism financing and proliferation of weapons of mass destruction risks and publish the relevant results.