From 2009 to 2011, FSVC provided financial sector technical assistance with funding from the U.S. Agency for International Development (USAID), Citi Foundation, and the U.S.-Russia Foundation for Economic Advancement and the Rule of Law (USRF).

The goal of this program was to transfer knowledge and build capacity to help Russia’s banking community and regulators combat money laundering, enhance supervision, and improve compliance, internal controls and risk management. Key local recipients of FSVC’s technical assistance included the Central Bank of Russia (CBR), members of the Association of Regional Banks of Russia (AsRos) and the Russian non-governmental organization of small- and medium-sized businesses (OPORA Russia).

The program aimed to strengthen financial sector policies, supervision, internal controls and operating standards by:

· Enhancing cooperation and technical assistance to promote local actions in fighting financial crimes and market abuse,

· Strengthening bank supervision;

· Building local capacity through the provision of training in best practices in overall bank management, risk mitigation, internal supervision and services; and

· Promoting greater transparency and accountability in the financial sector.

Program Impact

FSVC’s program resulted in the following achievements:

Strengthened CBR Bank Supervision on AML, Transparency and Risk Management

Thanks to FSVC’s assistance, CBR bank supervisors developed a stronger understanding of bank risk management practices, including risk mitigation, internal controls and anti-money laundering (AML) supervision for bank examinations.

Improved Commercial Bank AML Compliance, Transparency and Risk Management

FSVC trained AsRos member banks in risk-based AML compliance, including developing effective Know-Your-Customer (KYC) procedures, transaction monitoring and suspicious activity reporting.

FSVC also built the capacity of AsRos member banks to lend to the small and medium-sized enterprise (SME) sector, and thereby improve access to financial services and resources for local SMEs. In addition, FSVC trained banks in how to actively manage their portfolios to anticipate risks and mitigate volatility.

Contributed to Law/Policy Framework

The CBR obtained a clearer understanding of how stricter capital and liquidity requirements impact the financial sector and economy.