Russia allows foreign exchange brokers to remotely verify clients

Photo: Wikifx

The Association of Foreign Exchange Dealers (AFD), the self-regulatory agency of Russia, recently announced that over-the-counter ( OTC ) foreign exchange brokers in the country can now remotely verify their clients without having to be physically present.

This regulation allows credit institutions and other organizations to conduct transactions with monetary funds or property under the management of Russian banks, using the Unified Biometric System (UBS) for remote identification.

AFD was established at the end of 2015 as a self-regulatory agency established by participants in the Russian foreign exchange industry. Its main task is to formulate standards and regulations for foreign exchange dealers and resolve disputes between brokers and customers.

AFD received a clarification from the Russian Central Bank regarding remote verification of customers in early Jun 2020. Olga Skorobogatova, deputy governor of the Central Bank of Russia, subsequently confirmed that the current law will be amended.

Earlier, the Bank of Russia reported that complaints against foreign exchange brokers had decreased, but a month later it issued a warning that the agency found a significant increase in recruitment from unregulated brokers.

Reprinted from Wikifx, the copyright all reserved by the original author.