Additional requirements to consumer credit cooperatives, microfinance organizations and pawnshops

article 03/08/2020

The Federal law of July 13, 2020 No. 196-FL introduced a number of significant changes to the legislation governing the activities of consumer credit cooperatives, pawnshops and microfinance organizations.

Credit cooperatives

The law clearly defines the goals of creating credit cooperatives:

  • organization of mutual financial assistance to members and associate members by combining share contributions, attracted funds in the form of loans, and other funds;
  • placing funds through loans to members of cooperatives to meet their financial needs.

A mandatory requirement for the full name of credit cooperatives is the content of the word "credit".

Persons with criminal history on record for economic crimes or crimes against public authorities cannot be elected or appointed to the management boards, supervisory boards, to the positions of chairpersons or executive directors.

The Central Bank of the Russian Federation, when exercising control and supervisory functions over the activities of credit cooperatives, has the right to establish the forms, terms, procedure for drawing up and submitting reporting documentation.

Pawnshops

In addition, the Central Bank exercises supervisory functions over the activities of pawnshops and maintains the State Register of Pawnshops. Legal entities acquire the status of a pawnshop from the date of entering information about them in this state register and, accordingly, lose such status from the date of exclusion from it.

The absence within one year of concluded loan agreements secured by movable things or agreements for their storage are one of the main grounds for excluding a pawnshop from the state register.

The law also provides that the amount of loans provided by a pawnshop may not exceed the amount of assessment of the pledged items.

Microfinance organizations

The law establishes that such organizations are required to have an official website on the Internet with a domain name included in the group of domain names that make up the Russian national domain zone. Information in the field of personal data is subject to mandatory publication on such sites and in customer service points. The list of such information, the procedure and timing of their disclosure are also set by the Central Bank.

The federal law will come into force on October 10, 2020.

The subscribers of the Information and Analytical system Globas are able to get acquainted with the activities of all credit cooperatives, pawnshops and microfinance organizations. Globas totally contains data on over 8 thousand active organizations of this sector.