The Bank of Russia's service, the "Know Your Customer" platform, has started working.

Since July 1 of this year, all banks have joined the platform and now receive information about which risk group of suspicious transactions can be attributed legal entities and individual entrepreneurs. Transactions between clients from a low risk area should be carried out without restrictions. http://www.cbr.ru/about_br/dir/rsd_2022-07-01_1/

The resource has information about 7 million legal entities and individual entrepreneurs. The Bank of Russia has divided them into three groups — low, medium and high risk levels ("green", "yellow" and "red"). Now the "green" group includes about 99% of companies, the "yellow" – 0.7%, the "red" – 0.3%.

Money transfers and payments between clients from the "green" group should be carried out unhindered. If both the bank and the regulator have placed the client in the "red" zone, then the bank is obliged to block the funds of such a client and not comply with his orders to conduct operations. The information of the platform is additional for banks, they conduct the final assessment of the integrity of their clients' business independently.

Entrepreneurs who disagree with their inclusion in a high-risk group can appeal such a decision to the Interdepartmental Commission at the Bank of Russia, which includes Rosfinmonitoring, the Federal Customs Service of Russia, the Commissioner for Entrepreneurs' Rights, as well as representatives of banking and business associations.

http://www.cbr.ru/Content/Document/File/138760/inf_note_jul0122.pdf

"Business expenses, primarily micro, small and medium-sized, will significantly decrease. Banks will pay less attention to businesses from the "green" zone, focusing on customers with a high level of risk. This will reduce the document flow between entrepreneurs and banks," explained Dmitry Korshunov, Economic Adviser of the Central Federal District of the Central Bank of Russia.

"The majority of businessmen from the Moscow Region conduct business in good faith, within the framework of the law. Of the 400 000 registered individual entrepreneurs and legal entities, only a few are in the "red" zone," commented Vladimir Golovnev, the Commissioner for the Protection of the Rights of Entrepreneurs in the Moscow Region. "This service makes it possible to conclude transactions with counterparties without additional risks and subsequently avoid unnecessary checks by the tax authorities."