Russia | FSVC

FSVC Russia Program Key Indicators: 1999-2012
Years Since Inception	14
Projects Completed	425
Number of Volunteers	1,374
Pro Bono Hours Delivered	44,323

Russia Program Overview

Since Russia’s transition to the market economy, Financial Services Volunteer Corps (FSVC) has implemented over four hundred projects with various counterparts in the Russian financial sector. To execute these projects, FSVC has been supported by the U.S. Agency for International Development (USAID), and has consulted extensively with the Central Bank of Russia (CBR) on issues ranging from anti-money laundering, risk management and internal audit, to banking regulation and supervision. Although Russian financial institutions are stronger than during 1990s, the banking sector remains underdeveloped. To meet these shortcomings, FSVC – and its volunteer experts – continue to create and implement targeted programs devoted to fostering a transparent Russian banking sector that encourages active investment in the Russian financial system.

Key Accomplishments

FSVC Volunteer Richard Smith with participants at a seminar on anti-money laundering.

Anti-Money Laundering:

Money laundering remains high and persistent in the Russian banking sector. To combat the problem, FSVC’s anti-money laundering (AML) program targets financial corruption and criminal activity in the Russian banking sector, while simultaneously strengthening supervision and compliance, internal controls, and overall risk management related to Russian commercial banks. To accomplish these goals, FSVC partnered with the Central Bank of Russia (CBR) to implement Regulation 207-P, which outlines minimum standards for bank AML compliance programs. The regulation – by requiring banks to provide annual AML training to their staffs – is difficult to implement, which created an opportunity for FSVC to assist. Acting on this opportunity, FSVC conducted a series of consultations and trainings on AML in Moscow and St. Petersburg, but endeavors to bring similar programs to other important regions such as Tatarstan, Bashkortostan, the Urals, Siberia, and the Volga River.

Risk/Audit:

The Russian economy, which has remained reliant on commodity exports to power its economy, was exposed in the wake of the global financial crisis. In response, the Russian government prioritized the development of small and medium-enterprises (SMEs) to diversify its economy and create stable growth. Unfortunately this diversification has yet to take root, which has come in part from deficiencies in the Russian banking sector; specifically, a lack of financial tools for credit scoring and risk-based pricing that could increase the amount of SME loans. This shortcoming highlights a weakness of risk assessment and internal audit in the Russian banking sector. To address these concerns, FSVC has partnered with USAID and CBR to create programs that instruct to international norms and standards, provide direct technical advisory services, and guide implementation of policies, procedures, and techniques in an effort to nurture and strengthen Russia’s financial system.

In the links below, visitors can view FSVC's most recent Success Stories and News Items concerning Russia:

- News Item: FSVC's Tim O'Brien Co-authors Article on SME Finance for Central Bank of Russia

Office Contact

Tim O’Brien – Regional Director for Russia and Eurasia Programs
Zubovsky Blvd., 27/26
Building 3, Suite 1
Moscow, 119021, Russia
(T) +7 910 403 1610
(F) + 7 495 777 7062