“Refusal decisions” of banks on AML and CTF: yesterday, today, tomorrow

Abstract

Federal law No. 115 of 07.08.2001 provides credit organizations with the power to make decisions on refusal to conclude a Bank account (Deposit) agreement, refusal to execute an order to perform a banking operation (hereinafter referred to as “refusal decisions”), as well as on termination of Bank account (Deposit) agreements. 

The uncertainty of the criteria for making refusal decisions and strict liability for violating the requirements of AML/CFT legislation leads to the issuance of refusal decisions on a mass scale, an abundance of legal disputes about the legality and validity of the decisions made, and destabilizes the banking services market.

The article deals with the problems associated with the implementation of refusal decisions by credit organizations, as well as analyzes the draft new Law No. 948530-7, aimed at improving the existing legal regulation on this issue.