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Rosfinmonitoring will receive 10.61 billion rubles by 2030 for the development of a digital platform in the field of combating money laundering. One of its functions is the monitoring of cryptocurrency transactions, which ensures the de-anonymization of bitcoin wallet owners.
In 2021-2030, the federal budget will spend 10.61 billion rubles to finance measures to ensure the development of the Unified Information System (UIS) in the field of combating money laundering and financing of terrorism of the Federal Financial Monitoring Service (Rosfinmonitoring). This follows from the federal project "Digital Public Administration" (CGU) of the national program "Digital Economy".
The basis for this event will be the creation and development of an intelligent digital technological platform for participants in the National System for Combating Money Laundering, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction (AML/CFT/CPF).
Five federal executive bodies should be connected to this digital platform, and the UIS of Rosfinmonitoring should ensure the provision of coordination and support services. In addition, it is planned to operate a service for monitoring the analysis of cryptocurrency transactions.
Irina Ryazanova, a spokeswoman for Rosfinmonitoring, told CNews that the agency, as the coordinator of the national AML/CFT/CPF system, is constantly developing information technologies aimed at preventing, detecting and suppressing illegal activities. In accordance with the federal project of the Central State Administration, an intelligent digital technological platform AML/CFT/CPF and a service for monitoring and analyzing cryptocurrencies were developed.
How the Unified Information System of Rosfinmonitoring has been developing The unified information system of Rosfinmonitoring
has been created since 2001, since the appearance of the service itself. The task was to create an "effective" tool that would provide information support for the activities of Rosfinmonitoring and the national AML/CFT system and the relevant requirement of the FATF (an intergovernmental organization engaged in the development of recommendations in the field of anti-money laundering). As Mikhail Fedorov, Head of the Department for the Development of Information Technologies of Financial Monitoring of Rosfinmonitoring, said in a publication in the Financial Control magazine, at the first stage (from 2011 to 2014) there was an accumulation of data and the development of a regulatory and methodological framework.
With the help of foreign partners, the basic computing and communication infrastructure was created and the basic accounting and analytical subsystems were developed. At that time, the service received an average of 40 thousand messages per day.
During the second stage of the development of the UIS of Rosfinmonitoring - 2014-18 - new tasks were assigned to the service as part of the functions of the National Center for Assessing Threats and Risks to National Security Related to Money Laundering and Terrorist Financing. Among them: control over the expenditure of budget funds in the implementation of the state defense order, control over the financial operations of the strategicand countering the increased activities of the international terrorist organization ISIS.
In connection with the emergence of new tasks, it was decided to create UIS-3. At this stage, a risk-based approach was introduced (it formed the basis for the creation of the Risk Assessment Center), a system of interaction with accountable organizations through personal accounts was created, data centers and IT infrastructure were developed (a data warehouse was built, information in which was organized in the form of reference registers of information objects, and a subsystem for their automatic classification was introduced).
Also, a practical rejection of paper media was implemented when interacting with reporting organizations, analytical tools based on the domestic iRule platform were developed, and a mechanism for processing unstructured data was developed.
The main innovation of UIS-3 is the ability to automatically identify, identify and classify information objects from any resources received by Rosfinmonitoring. "In his work, the analyst uses already marked data and applies the tools of macrostatistical, visual and predictive analysis," explains Fedorov. "Thanks to this, the ability of the system to process incoming information has increased significantly: today we receive 15 times more messages per day (600 thousand), including a new type of information - reports of suspicious activity."
Artificial intelligence in the fight against money
laundering At the same time, the FATF assessment events held in 2019 and the experience of operating the UIS highlighted a number of problematic issues, Fedorov admits. Increasing the level of digitalization and accessibility of the Internet, the emergence of new channels and ways of conducting financial transactions and information technologies (cryptocurrencies, blockchain, artificial intelligence) require continuity and advanced updating of the AML/CFT environment. "In these conditions, the tools and resources in service often do not correspond to the level of the digital economy," says Fedorov.
As a result, in 2020, a new stage of the life cycle of the Rosfinmonitoring UIS started - the stage of digital transformation, which should include all participants in the AML/CFT system with different development centers. The basic element of the transformation is the creation of the Intelligent Digital Technology Platform (ICTP), the basis for which is a specialized information technology platform (ITP) and the iRule analytical platform.
The intellectual component of the ICTP will be provided by a change in the paradigm of the activities of functional departments, which provides for a transition from working with data to operating with knowledge, says Mikhail Fedorov. For this purpose, it is planned to create and regularly fill a knowledge base based on the ontology of the subject area, taking into account role models of objects and context zones. The development of analytical tools is focused on a consistent transition from the analysis of transactions to the analysis of financial schemes and flows.
A separate area will be the introduction of machine learning and artificial intelligence (AI) technologies, which will allow obtaining and applying new knowledge to identify AML/CFT risks and to develop measures to minimize them and assess the effectiveness of the measures taken. The main task in this direction isautomatic classification and clustering of financial monitoring objects. In particular, a mechanism of a data bank of schemes is being introduced, which will ensure the collective use of the results of analysis in the form of schemes of financial transactions. In addition, this will take into account the results of the daily initial analysis of transaction reports and financial investigations. The use of this tool will create the necessary conditions for the introduction of machine learning technologies in order to analyze operations and their participants by forming a layer of reliably placed data, as well as increase the level of information security when using the visual analysis component of FAST.
Also, according to Fedorov, the approach to the work of an analyst should change in the updated UIS of Rosfinmonitoring: his main task will not be to perform routine data processing operations, but to extract new knowledge from data and bring this knowledge to decision-makers.
Blockchain and Money
Laundering According to the FATF Digital Transformation Questionnaire, the greatest potential for the development of the AML/CFT system in terms of increasing efficiency is possible through the integration of AI and its components, as well as the use of application programming interfaces (APIs) and customer due diligence tools. However, in the context of increasing threats to the development of the shadow sector of the economy associated with the illegal circulation of digital financial assets (DFAs) and the implementation of illegal activities, the organization of the activities of the Financial Intelligence Unit (FIU) in the context of the functioning of blockchain is becoming especially relevant, according to an article in the Financial Control journal by a specialist of the Department for Supervision of Activities and Legal Support of the Interregional Directorate of Rosfinmonitoring for North-Western District of Kristina Kochetova.
The Transparent Blockchain system has become a new tool for controlling transactions in the field of DFAs. Its functionality is aimed at achieving centralized control over the de-anonymization of beneficiaries engaged in POT/TF transactions.
The internal structure of the service makes it possible to divide operations into clusters and, thus, conduct a more effective analysis of the movement of visual assets in order to identify and suppress illegal activities, Kochetova explains. Initially, the "Transparent Blockchain" was aimed at working with bitcoin, now the system supports other cryptocurrencies.
Recently, changes have been made to the legislation legalizing the mining of digital currency. At the same time, Rosfinmonitoring will maintain a list of identification addresses in respect of which there is reason to believe that transactions with digital currency accounted for at such identifier addresses could be carried out for the purpose of money laundering. Rosfinmonitoring will also be able to request information from legal entities and individual entrepreneurs about their transactions with digital currency obtained as a result of mining.
In 2021-2030, the federal budget will spend 10.61 billion rubles to finance measures to ensure the development of the Unified Information System (UIS) in the field of combating money laundering and financing of terrorism of the Federal Financial Monitoring Service (Rosfinmonitoring). This follows from the federal project "Digital Public Administration" (CGU) of the national program "Digital Economy".
The basis for this event will be the creation and development of an intelligent digital technological platform for participants in the National System for Combating Money Laundering, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction (AML/CFT/CPF).
Five federal executive bodies should be connected to this digital platform, and the UIS of Rosfinmonitoring should ensure the provision of coordination and support services. In addition, it is planned to operate a service for monitoring the analysis of cryptocurrency transactions.
Irina Ryazanova, a spokeswoman for Rosfinmonitoring, told CNews that the agency, as the coordinator of the national AML/CFT/CPF system, is constantly developing information technologies aimed at preventing, detecting and suppressing illegal activities. In accordance with the federal project of the Central State Administration, an intelligent digital technological platform AML/CFT/CPF and a service for monitoring and analyzing cryptocurrencies were developed.
How the Unified Information System of Rosfinmonitoring has been developing The unified information system of Rosfinmonitoring
has been created since 2001, since the appearance of the service itself. The task was to create an "effective" tool that would provide information support for the activities of Rosfinmonitoring and the national AML/CFT system and the relevant requirement of the FATF (an intergovernmental organization engaged in the development of recommendations in the field of anti-money laundering). As Mikhail Fedorov, Head of the Department for the Development of Information Technologies of Financial Monitoring of Rosfinmonitoring, said in a publication in the Financial Control magazine, at the first stage (from 2011 to 2014) there was an accumulation of data and the development of a regulatory and methodological framework.
With the help of foreign partners, the basic computing and communication infrastructure was created and the basic accounting and analytical subsystems were developed. At that time, the service received an average of 40 thousand messages per day.
During the second stage of the development of the UIS of Rosfinmonitoring - 2014-18 - new tasks were assigned to the service as part of the functions of the National Center for Assessing Threats and Risks to National Security Related to Money Laundering and Terrorist Financing. Among them: control over the expenditure of budget funds in the implementation of the state defense order, control over the financial operations of the strategicand countering the increased activities of the international terrorist organization ISIS.
In connection with the emergence of new tasks, it was decided to create UIS-3. At this stage, a risk-based approach was introduced (it formed the basis for the creation of the Risk Assessment Center), a system of interaction with accountable organizations through personal accounts was created, data centers and IT infrastructure were developed (a data warehouse was built, information in which was organized in the form of reference registers of information objects, and a subsystem for their automatic classification was introduced).
Also, a practical rejection of paper media was implemented when interacting with reporting organizations, analytical tools based on the domestic iRule platform were developed, and a mechanism for processing unstructured data was developed.
The main innovation of UIS-3 is the ability to automatically identify, identify and classify information objects from any resources received by Rosfinmonitoring. "In his work, the analyst uses already marked data and applies the tools of macrostatistical, visual and predictive analysis," explains Fedorov. "Thanks to this, the ability of the system to process incoming information has increased significantly: today we receive 15 times more messages per day (600 thousand), including a new type of information - reports of suspicious activity."
Artificial intelligence in the fight against money
laundering At the same time, the FATF assessment events held in 2019 and the experience of operating the UIS highlighted a number of problematic issues, Fedorov admits. Increasing the level of digitalization and accessibility of the Internet, the emergence of new channels and ways of conducting financial transactions and information technologies (cryptocurrencies, blockchain, artificial intelligence) require continuity and advanced updating of the AML/CFT environment. "In these conditions, the tools and resources in service often do not correspond to the level of the digital economy," says Fedorov.
As a result, in 2020, a new stage of the life cycle of the Rosfinmonitoring UIS started - the stage of digital transformation, which should include all participants in the AML/CFT system with different development centers. The basic element of the transformation is the creation of the Intelligent Digital Technology Platform (ICTP), the basis for which is a specialized information technology platform (ITP) and the iRule analytical platform.
The intellectual component of the ICTP will be provided by a change in the paradigm of the activities of functional departments, which provides for a transition from working with data to operating with knowledge, says Mikhail Fedorov. For this purpose, it is planned to create and regularly fill a knowledge base based on the ontology of the subject area, taking into account role models of objects and context zones. The development of analytical tools is focused on a consistent transition from the analysis of transactions to the analysis of financial schemes and flows.
A separate area will be the introduction of machine learning and artificial intelligence (AI) technologies, which will allow obtaining and applying new knowledge to identify AML/CFT risks and to develop measures to minimize them and assess the effectiveness of the measures taken. The main task in this direction isautomatic classification and clustering of financial monitoring objects. In particular, a mechanism of a data bank of schemes is being introduced, which will ensure the collective use of the results of analysis in the form of schemes of financial transactions. In addition, this will take into account the results of the daily initial analysis of transaction reports and financial investigations. The use of this tool will create the necessary conditions for the introduction of machine learning technologies in order to analyze operations and their participants by forming a layer of reliably placed data, as well as increase the level of information security when using the visual analysis component of FAST.
Also, according to Fedorov, the approach to the work of an analyst should change in the updated UIS of Rosfinmonitoring: his main task will not be to perform routine data processing operations, but to extract new knowledge from data and bring this knowledge to decision-makers.
Blockchain and Money
Laundering According to the FATF Digital Transformation Questionnaire, the greatest potential for the development of the AML/CFT system in terms of increasing efficiency is possible through the integration of AI and its components, as well as the use of application programming interfaces (APIs) and customer due diligence tools. However, in the context of increasing threats to the development of the shadow sector of the economy associated with the illegal circulation of digital financial assets (DFAs) and the implementation of illegal activities, the organization of the activities of the Financial Intelligence Unit (FIU) in the context of the functioning of blockchain is becoming especially relevant, according to an article in the Financial Control journal by a specialist of the Department for Supervision of Activities and Legal Support of the Interregional Directorate of Rosfinmonitoring for North-Western District of Kristina Kochetova.
The Transparent Blockchain system has become a new tool for controlling transactions in the field of DFAs. Its functionality is aimed at achieving centralized control over the de-anonymization of beneficiaries engaged in POT/TF transactions.
The internal structure of the service makes it possible to divide operations into clusters and, thus, conduct a more effective analysis of the movement of visual assets in order to identify and suppress illegal activities, Kochetova explains. Initially, the "Transparent Blockchain" was aimed at working with bitcoin, now the system supports other cryptocurrencies.
Recently, changes have been made to the legislation legalizing the mining of digital currency. At the same time, Rosfinmonitoring will maintain a list of identification addresses in respect of which there is reason to believe that transactions with digital currency accounted for at such identifier addresses could be carried out for the purpose of money laundering. Rosfinmonitoring will also be able to request information from legal entities and individual entrepreneurs about their transactions with digital currency obtained as a result of mining.
