FINANCIAL NO. 22 December 2 0 1 8 SECURITY CONTENTS 5 Welcome Speech by Mr. Yury Chikhanchin, Director of Rosfinmonitoring 5th Anniversary of the International Network AML/CFT Institute 6 4th International Scientific and Practical Conference “The Era of Crypto Economy: New AML/CFT Challenges and Regtech” 8 “Staying at the Forefront of Current Development is the Best Way to Assess Emerging Risks” 10 “It’s Our Job to Make Technological Innovation Serve the Public Interest” 14 “Practical Impact of Our Efforts Must Increase Year After Year” 16 “The Stability of the Budgetary System Directly Depends on the Success of AML/CFT Efforts” 17 “Preserving Regulatory Stability is One of Our Priorities” 19 “The Key Feature of Modern Information Technologies is Its Rapidly Growing R&D Intensity” 21 “I’m Particularly Pleased to See the Younger Generation of Our Institute Contribute to Our Work” 23 “Regtech as an Effective AML/CFT Compliance Tool” 25 AML/CFT Decision-Making Support System 27 AML/CFT Specialists Training 29 Anniversary Meeting of the Board of the International Network AML/CFT Institute 31 Network-Based AML/CFT Training Mode: Development Prospects Digital currency 34 Bitcoin Price Dynamics: Results and Prospects in Russia Compliance 40 Improving Compliance Management In Industrial Enterprises Commonwealth of Independent States 45 Strengthening Cooperation with Relevant CIS Agencies and International Organizations Eurasian Group 48 Mutual Evaluation Report of Tajikistan Tops the Agenda International Block 51 It`s Necessary to Strengthen International Cooperation 54 MONEYVAL’s 57th Plenary Meeting Interagency Working Group 56 New Legislation Affecting the Trade in Precious Stones and Metals Fintech 59 Fintech’s Impact on Anti-Money Laundering and Terrorism Finicing Video Conferencing 63 The Purpose of the VCS Plan is to Strengthen the Capacity of National AML/CFT Systems in Eurasia Sport 67 Departmental Sports: 2018 Highlights News Block 71 A meeting in NWFD to discuss preparations for the 4th round of the FATF mutual evaluations 72 A meeting with the plenipotentiary representative of the Russian President in NWFD 3 FINANCIAL SECURITY December 2018 NO. 22 EDITORIAL BOARD Chairman Deputy Chairman Editor of Editorial of Editorial in Chief Board Board Irina Ivanova Yury Chikhanchin Vladimir Ovchinnikov Members of Editorial Board Yury Korotkiy Galina Bobrysheva Vladimir Glotov Oleg Krylov Alexander Klimenchenok Evgeny Legostaev Pavel Livadnyy Vladimir Nechaev Alexey Petrenko Andrey Frolov 4 FINANCIAL NO. 22 December 2 0 1 8 SECURITY DEAR READERS, ive years ago, in 2013, research centres of the AML/CFT Institute. Close 15 leading universities cooperation, experience sharing, and joint training and research centres of courses, conferences and workshops, form the the Russian Federation basis of a common educational environment and Fand its partner countries an integrated AML/CFT qualification assessment founded the International system of Eurasia. A close scrutiny of the educational Network AML/CFT Institute. processes at national universities by financial When it comes to the early intelligence units ensures that their graduates have stages of formation of this excellent employment opportunities. educational consortium, the support provided to the project by the Ministry of Today the International Network AML/CFT Institute Education and Science and the Federal Agency for is emerging as the world’s key AML/CFT talent Scientific Organizations was crucial, allowing us to set pipeline built around a new modern format of inter- both the immediate and long-term objectives for it. university and scientific partnership, a format that gives rise to innovative AML/CFT ideas and scientific Since then, the geography of the International developments and helps train professionals capable Network AML/CFT Institute participants has expanded of repelling economic attacks and countering considerably and today includes 35 universities and financial and economic risks and threats. Our to- research centres from 7 countries of Eurasia: Belarus, do list includes the updating and development Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan and of new training programmes featuring innovative Uzbekistan. Among the AML/CFT Institute’s partners approaches and technologies, revision and are the UNCTC Global Counter-Terrorism Research augmentation of the existing teaching and learning Network, the Association of BRICS Business Schools, aids, strengthening of the relationship between the CSTO/EAEU Academy, and the scientific institutes training programmes and occupational standards to of the Russian Academy of Sciences. enable the training of in-demand specialists, and a number of other tasks. Each of the universities of the International Network AML/CFT Institute has a faculty, department or research We’ve built considerable educational and scientific centre specializing in AML/CFT training and offering capacity for the development of the AML/CFT degree programmes in this field. The uniqueness system both at the international and regional levels, of the AML/CFT training programme lies in its including for the preparation and undergoing of multidisciplinary scope that encompasses such areas evaluations by the FATF and FATF-style regional of study as computer science, economics, psychology, bodies, particularly the Eurasian Group. The high transnational crime in international relations, etc. quality of the work carried out by our consortium has been recognized for many years by both national Graduates from the universities of the International and international organizations. Annual reports on Network AML/CFT Institute are in demand among the activities of the AML/CFT Institute are presented not only financial intelligence units, but also affiliate to the President of the Russian Federation. All this agencies, corporations and organizations. makes it all the more necessary to continue to move forward, preserving and multiplying both I’d like to thank all stakeholders for their effective the network-based unity and uniqueness of all its work and cooperation between the universities and participants. Yury Chikhanchin, Director of Rosfinmonitoring 5 FINANCIAL SECURITY December 2018 NO. 22 5th ANNIVERSARY OF THE INTERNATIONAL NETWORK AML/CFT INSTITUTE 4TH INTERNATIONAL SCIENTIFIC AND PRACTICAL CONFERENCES “THE ERA OF CRYPTO ECONOMY: NEW ML/TF CHALLENGES AND REGTECH” The International Network AML/CFT Institute’s 4th Scientific and Practical Conference “The Era of Crypto Economy: New ML/TF Challenges and Regtech” was held on 12 - 14 November 2018 in Moscow. The Conference was organized by the Federal Financial Monitoring Service, the International Training and Methodology Centre for Financial Monitoring (ITMCFM), Lebedev Physical Institute (FIAN) and the National Research Nuclear University MEPhI Konstantin Litvinov, Editor-Observer 6 FINANCIAL NO. 22 December 2 0 1 8 SECURITY he conference was attended by over 500 representatives of EAG, CIS and BRICS financial intelligence units, universities and scientific organizations, Russian government agencies Tand financial and non-financial institutions. The conference was dedicated to the issues outlined in Presidential Instruction No. 2037 dated October 5, 2017, which urged authorities to work on the development, creation and application of modern IT solutions to the regulation and analysis of financial flows, as well as on the development of innovative financial oversight tools that leverage the potential offered by artificial intelligence and regulatory and blockchain technology, particularly in relation to crypto assets. On the opening day of the conference, hosted by FIAN, welcoming remarks to the participants came with the Presidential Administration. M. Strikhanov, from Yu. Chikhanchin, Director of Rosfinmonitoring; Rector of MEPhI, and V. Glotov, Deputy director of A. Seryshev, Assistant to the President of the Russian Rosfinmonitoring, delivered opening remarks to the Federation; M. Kotyukov, Minister of Science and participants. Alongside senior officials of federal Higher Education; S. Ryabukhin, Chairman of the agencies and educational and scientific institutions, Council of Federation of the Federal Assembly of the conference was attended by representatives of the Russian Federation Committee for Budget and major state corporations from among the industrial Financial Markets; I. Divinsky, First Deputy Chairman partners of the International Network AML/CFT of the State Duma’s Financial Market Committee; Institute, including Rostec, Rosseti, Russian Railways, G. Mesyats, Academician of the Russian Academy Roskosmos and Aeroflot. Speaking on behalf of the of Sciences and member of the RAS Board; and Presidential Administration, V. Belinsky, Information Vrindaba L. Gohil, First Secretary of the Trade Officer with the Presidential Administration’s Anti- Department of the Embassy of India in Russia. Corruption Department, presented a report on the liability of legal persons for corruption offences. Thematic sections of the conference took place at FIAN and MEPhI, along with the student forum Participants in the second part of the conference, “Digital Economy in the Context of National Security” held in the roundtable format, continued to discuss and sports competitions for students. topical issues of compliance with anti-corruption legislation. Participants attended the scientific-practical workshop “Combating Corruption as a Factor of Stable The conference ended on November 14 at FIAN with Economic Development”,