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FinTechs belonging to this category provide identification services, which are required for most banking services.
Introduction
Attitude of the country towards identification services
Identification of customers, their representatives, beneficial owners and beneficiaries as well as the provision of corresponding services is carried out in accordance with the Federal Law No. 115-FZ dated August 07, 2001 "On Countering the Legalization (Laundering) of Illegal Earnings and the Financing of Terrorism" (the "Anti-Money Laundering Law", AML).
The legislation of the Russian Federation also provides for a simplified customer identification mechanism for individuals, allowing them to receive financial services remotely from different banks by confirming their identity using biometric personal data (facial image and voice) (par. 21 of Article 3 of the AML).
The use of biometric data for identification purposes is regulated by the Federal Law No. 572-FZ dated December 29, 2022 "About Implementation of Identification and (or) Authentication of Physical Persons with Use of Biometric Personal Data, about Modification of Separate Legal Acts of the Russian Federation and Recognition Voided Separate Provisions of Legal Acts of the Russian Federation" (the "Law on the Identification and Authentication of Physical Persons with Use of Biometric Personal Data").
Legal affairs
Obligations and requirements to provide identification services
Russian legislation does not contain requirements for licensing activities related to identification or simplified identification.
Requirements for identification of customers, their representatives, beneficiaries and beneficial owners for leasing companies, telecom operators, advocates, notaries, etc. are determined by Rosfinmonitoring as the government body. The Bank of Russia in agreement with Rosfinmonitoring (subpar. 14, par. 2 of Article 7 of the AML) determines requirements for credit organizations and non-credit financial organizations (e.g., professional participants in the securities market, operators of investment platforms, insurance organizations, foreign insurance organizations, insurance brokers, management companies of investment funds, mutual funds and non-state pension funds, operators of financial platforms, operators of information systems in which digital financial assets are issued, operators of exchange of digital financial assets).
Credit organizations as well as non-credit financial organizations are entitled to enter into agreements on entrusting identification or simplified identification and updating of information.
Thus, credit organizations are entitled to entrust such actions to a federal postal service organization, a bank payment agent, a telecom operator that has the right to independently provide mobile radiotelephone services, a certification center accredited in the manner established by the Federal Law No. 63-FZ dated April 6, 2011 "On Electronic Signature" (par. 1.5 of Article 7 of the AML), as well as to the operator of a financial platform (subpar. 5 of par. 1.5-8 of Article 7 of the AML) or another credit organization (par 1.5-9 of Article 7 of the AML).