Auditors are obliged to notify the Federal Service for Financial Monitoring about shady deals and financial transactions

The Federal Law from April 23, 2018 № 112-FL «On countering the legalization (laundering) of criminally obtained incomes and the financing of terrorism» and the Article 13 of the Federal Law «On auditing» were amended. According to them, auditing firms and private auditors are obliged to inform the Federal Service for Financial Monitoring (hereinafter Rosfinmonitoring) about any deals and financials transactions of their clients which were or could be aimed at legalization of criminally obtained incomes or financing of terrorism.

The procedure of reporting about such kind of deals or financial transactions is determined by the Government of Russia. Auditor may not disclose information about the fact of data reporting.

Amendments also establish that Rosfinmonitoring determines and coordinates with other regulatory authorities the form of data provided and the procedure of data provisioning through user accounts of regulatory authorities. The Law also defines user account and its purposes.

For reference
The Information and Analytical System Globas contains information about over 15,5 thousand organizations in Russia carrying out fiscal audit as registered principal activity. The subscription on the System opens possibility to get acquainted with their activities.

Amount of members of self-regulatory organization of auditors decreases (Picture 1).

Picture 1. Amount of members of self-regulatory organization of auditors in 2012 — 2016 (men). Source — Ministry of Finance of RF, as of 31.05.2017

The number of given audit reports on obligatory audit also decreases (Picture 2).

Picture 2. Number of given audit reports on obligatory audit in 2009 — 2015 (units). Source — Ministry of Finance of RF, as of 19.09.2017