The amendments will enable licensed participants and asset management companies (AM) allow banks perform the ID procedure and refrain from performing the identification of beneficiaries themselves.

Today, the ID procedure for licensed participants’ and AM clients follow the anti-money-laundering law. The process is regulated by Rosfinmonitoring Directive 59 of 17 February 2011, according to which the client is to be present at the identification. This requirement is a huge obstacle for long-distant contracts.

The amendments were brought forward by the National Stock Market Participants Association (NAUFOR), initiated in Summer 2013, when NAUFOR appealed to Rosfinmonitoring to simplify the identification procedure. The Assocaiation plans to continue consultations with the State Duma Financial Markets Committee, Rosfinmonitoring and the Central Bank of Russia, with the aim of saving clients the trouble to appear in person in all cases when settlement is performed via wire transfer.

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