Since October 1, a service for checking counterparties has been launched on the platform of the Bank of Russia. Who can benefit from the service? How to use it? What risks does the service help to avoid? Read the expert article by Acsour specialists.
"Know your client": the main thing about the Bank of Russia service
In 2022, the Bank of Russia launched the "Know your client" platform. The service allowed credit institutions to receive information about the involvement of clients (legal entities and sole proprietors) in suspicious transactions.
The service evaluated bank transactions of legal entities and individual entrepreneurs on a daily basis, assigning them a risk level:
The high level of risk implied strict control over operations. In addition, banks could refuse to conduct transactions to clients from the red category, terminate contracts or not conclude new ones.
The service was launched to ensure the principle of due diligence in concluding transactions: Resolution No. 53 of the Plenum of the Supreme Arbitration Court of the Russian Federation dated October 12, 2006 implies the use by the taxpayer of all available opportunities and tools to obtain information about the reliability of the counterparty. In addition, the requirements of Article 54.1 of the Tax Code of the Russian Federation, the recommendations of the Federal Tax Service and practice on tax disputes confirm the need to verify partners and clients.
With the help of the service, an entrepreneur could check whether the company with whom they plan to cooperate is in a high risk group and make the right decision about the next steps.
What has changed?
Since October 1, the Bank of Russia has opened general access to the Know Your Customer business integrity check service: now these platforms are available not only to credit institutions, but also to all interested parties.
How to use the service of the Bank of Russia?
To check the status of the counterparty, you need to go to the service and enter the following information:
The service evaluates only companies and sole proprietors, individuals are not taken into account, even if they are engaged in private practice.
Acsour experts note that the service provides an opportunity to review the company’s risk group: for this, an organization that does not agree with the decision to assign a particular risk category should apply to the Bank of Russia with an application for review.
It is expected that the opening of shared access to the service will allow businesses to reduce the risks of cooperation with unscrupulous partners, however, Acsour experts note that these platforms are not exhaustive. For a full-fledged verification of the counterparty, we recommend that you apply for the due diligence service: our lawyers will conduct an in-depth analysis of the activity and provide an exhaustive written review.
"Know your client": the main thing about the Bank of Russia service
In 2022, the Bank of Russia launched the "Know your client" platform. The service allowed credit institutions to receive information about the involvement of clients (legal entities and sole proprietors) in suspicious transactions.
The service evaluated bank transactions of legal entities and individual entrepreneurs on a daily basis, assigning them a risk level:
- Green for low risk;
- Yellow for medium;
- Red for high.
The high level of risk implied strict control over operations. In addition, banks could refuse to conduct transactions to clients from the red category, terminate contracts or not conclude new ones.
The service was launched to ensure the principle of due diligence in concluding transactions: Resolution No. 53 of the Plenum of the Supreme Arbitration Court of the Russian Federation dated October 12, 2006 implies the use by the taxpayer of all available opportunities and tools to obtain information about the reliability of the counterparty. In addition, the requirements of Article 54.1 of the Tax Code of the Russian Federation, the recommendations of the Federal Tax Service and practice on tax disputes confirm the need to verify partners and clients.
With the help of the service, an entrepreneur could check whether the company with whom they plan to cooperate is in a high risk group and make the right decision about the next steps.
What has changed?
Since October 1, the Bank of Russia has opened general access to the Know Your Customer business integrity check service: now these platforms are available not only to credit institutions, but also to all interested parties.
How to use the service of the Bank of Russia?
To check the status of the counterparty, you need to go to the service and enter the following information:
- the taxpayer identification number of the company in respect of which the request was made;
- information about the initiator of the request;
- the purpose of the request;
- a security code that prevents multiple accesses by robot programs.
The service evaluates only companies and sole proprietors, individuals are not taken into account, even if they are engaged in private practice.
Acsour experts note that the service provides an opportunity to review the company’s risk group: for this, an organization that does not agree with the decision to assign a particular risk category should apply to the Bank of Russia with an application for review.
It is expected that the opening of shared access to the service will allow businesses to reduce the risks of cooperation with unscrupulous partners, however, Acsour experts note that these platforms are not exhaustive. For a full-fledged verification of the counterparty, we recommend that you apply for the due diligence service: our lawyers will conduct an in-depth analysis of the activity and provide an exhaustive written review.
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