Instruments allowing to cut expenses

The Government and the expert community from time to time are coming back to the topic of necessity to support business in financial and time costs cutting that an entrepreneur has to bear under reliability investigation of current or potential partners. Such support is possible by means of legislation development. 

For example, the Central Bank of the RF for the purposes of anti-money laundering and terrorism financing (AML/TF) demands financial organizations to identify clients, representatives of clients, beneficiaries and beneficial owners. The Federal Financial Monitoring Service is charged with similar functions that can request and receive information about beneficial owners of legal entities and individual entrepreneurs` clients.

The Federal Tax Service of the RF, realizing the AML/TF task demands business entities before entering into business transactions to take measures of «Due Diligence and Care» by investigating contractors for corresponding to certain criteria using as well open data sources and specified data bases.  

Russian business more frequently applies for compliance method – orientation to the world`s best practices and standards. Compliance represents correspondence to internal and external demands and standards: legislative requirements, regulatory documents, rules and standards of supervisory authorities, industry associations and self-regulating organizations, codes of behavior etc.

Under the conditions of economic reconstruction to new forms of development, instruments helping business to keep rules, demands, standards and assisting to cost cutting become currently important. It should be noted that the Information and analytical system Globas-i in a meaningful way helps to keep the above-mentioned demands of legislation and regulatory acts. First of all it is a data base of legal entities and individual entrepreneurs and also: 

• Business information source
• Instrument for different business tasks and taking primary management decisions
• Complex on prevention for business activities risks

Among solvable business tasks – investigation of Russian and foreign contractors; financial analysis and solvency assessment; identification of frauds, potential bankrupts,fly-by-night companies; analysis of government contracts, purchases, tenders; assessment of claim load; analysis of competitive environment, industry state; ultimate beneficiary detection etc.

The government for its part also attempts to help business in costs cutting, while current legislation imposes limitations on receiving information about business entities and by that makes difficult the possibility to get full information and estimate potential constant contractors. 

Shortly the Ministry of Economic Development and Trade estimates actual effect of legislation on business efficiency. At the first stage 239 regulatory legal acts will be examined. Quite possibly that some acts will fail the investigation.