The main innovation for banks is the update of the information required

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The number of refusals to transfer and pay domestically and internationally may increase. This is due to changes to Recommendation 16, which were presented by the Financial Action Task Force (FATF). The anti-terrorism organization believes that banks should verify the recipient's data by comparing it with that specified in their systems.

If the changes are adopted, then Russia, despite the suspension of its membership in FATF, will conscientiously fulfill all requirements, Rosfinmonitoring told Izvestia. The position of the Russian Federation regarding the updated conditions is being worked out with the competent agencies, the service indicated.

Will be sent to the address
FATF plans to significantly change the approach and requirements for the transparency of transfers and payments, follows from the explanatory note on the updates to Recommendation 16. They are currently in the process of public consultation, which will last until May 3. The group explains the innovations by the need for adaptation in payment business models and messaging standards.

"The changes include clarifying the roles and responsibilities of the various participants in the payment chain and improving the content and quality of basic originator and recipient information contained in payment messages. This should help achieve greater transparency and more effective compliance processes for financial institutions," the FATF document notes.

The innovations, in particular, suggest that the mandatory indication of the name and location of both the sender and the recipient is planned to be extended not only to morocco whatsapp resource transfers between individuals, but to all transactions. The group believes that such a change is appropriate, since many ways have appeared when "various types of payment cards can be and are used for money laundering and terrorist financing." For example, when counterfeit cards and sellers disguise illegal goods as legitimate ones for the purchase of goods, and so on, follows from the explanatory note.

— from clients when making payment orders. Thus, according to one of the proposed options, the sender's and recipient's addresses must be included as mandatory information about each payment. However, it is specified that if the address is unavailable, it is sufficient to indicate the name of the country and city, — explained Alexander Linnikov, Chairman of the Board of the Non-Commercial Partnership "National Payment Council" (NP "NPC").

Don't trust, verify
According to Viktor Dostov, Chairman of the Association of Participants in the Electronic Money and Money Transfer Market, the most unpleasant innovation is the proposed FATF requirement for banks to check that the recipient’s data specified in the payment order matches what is in the system.

“Of course, it is specified that the match should not be 100%, but we all understand that the number of rejected translations will increase sharply due to trivial typos,” he emphasized.

The main burden of problems because of this will fall on the shoulders of payers, who will have to correct the data, send money again, and so on, the expert noted. At the same time, banks will receive their commission, even if the payment does not go through, Viktor Dostov specified.

True, credit institutions will also have to fork out some cash. If the recommendation is adopted in its current form, banks will face significant additional costs to change their IT systems and protocols, the expert emphasized.

The draft document includes an approach in which checks are carried out both on the side of the sender’s bank and on the side of the recipient’s bank, continued Vice President of the Association of Russian Banks (ARB) Alexey Voylukov.