SWIFT (Society for Worldwide Interbank Financial Telecommunications) is a communication system used by over 11,000 financial institutions in 200 countries. Its main function is to relay messages related to finances and funds between any two banks worldwide. It is simply a gateway for any messages regarding financial transactions between two accounts.
What is SWIFT?
Carl Reuterskiöld founded SWIFT in 1973, and its headquarters is in Belgium. Only 239 banks in 15 countries used the system at the time of its inception, but over time it has evolved to the extent that more than half of all high-value cross-border transactions are using SWIFT today! It has three operation centers that ensure the secure relaying of data between countries. These data centers are located in the Netherlands, Switzerland, and the United States, and relay information in almost real-time.
SWIFT operates by assigning each transferee a unique code. All outgoing funds or messages carry this unique code. The message then passes through no less than intermediary 1-3 banks, after which it reaches its final destination. Charges may be levied on the transaction in the process- especially if the exchange of currency occurs in the process.
The SWIFT system is used by a number of industries, including Banks, Trading Services, Securities Dealers, Foreign exchanges, and other such financial institutions.
Banning Russian banks from SWIFT
After Russia’s declaration of war on Ukraine, many NATO (North Atlantic Treaty Organization) countries pledged to completely remove Russia from using any SWIFT services. In doing so, Russian banks would be unable to send and receive any finances from any institutions outside of the country. This will also increase the risk of financial fraud stemming from a decrease in security. The ultimate goal of the NATO countries is to isolate the country from participating in interbank communication with foreign banks.
Most of the transactions done using SWIFT are in Dollars, Euros, and Pound Sterling. The sanctions against Russia have already dramatically reduced the value of the Russian Rouble against the Dollar significantly, and there’s no doubt that banning Russian banks from using SWIFT entirely will lead to further degradation of the currency. By banning Russia from communicating or interacting with foreign banks, they will be unable to engage in any foreign trade. This will lead to the settling of funds becoming a long and tedious, if not impossible process.
Russia relies greatly on the export of energy sources (oil and natural gases) to fuel its economy. In fact, almost half of its exports come from the energy sector! Taking the example of Iran- which lost over a third of its foreign trade following a ban from SWIFT in 2014- Russia may be in big trouble if the ban is indefinite.
Russia’s Retaliation
However, this pressure from the west may lead to a newfound understanding between Russia, China, and India. There have been talks of China roping the two countries into adopting its own cross-border interbank payment system (CIPS). This will lead to the strengthening of relationships as well as trade between the three countries.
In doing so, the USA, UK, and Canada will also miss out on a number of trade opportunities, leading to the prices of petroleum and other imported commodities rising in their own counties. Russia may also move forward by promoting its own financial communication system- The system for Transfer of Financial Messages (SPFS). It has been developing this system since 2014. As of now, it seems that SWIFT has been suspended in a large percentage of Russian banks, excluding Sberbank and Gazprombank, which are two of its biggest institutions.
Only time will tell if the SWIFT ban in Russia is just an empty threat, or if the superpowers in the west will make good on their promise and cut Russia off entirely. This may teach Russia a lesson and temporarily disrupt their economy. However, are these sanctions really sustainable for the rest of the world? It’s all up to how Russia and its allies retaliate. Russia has developed the AML Certification in Russia. So let us understand the different certification content in detail.
AML Certification in Russia
Certified Anti-Money Laundering Professional (CAMP) is one of the best international AML certification in Russia. In order to take the course globally, the team of Regtechtimes Academy entered into an agreement to offer the certification program to the global compliance officers. Regtechtimes Academy in association with Riskpro Learning offers the Certified Anti-Money Laundering Professional (CAMP) program to the international community. Regtech Times Academy accreditation is known worldwide. This course was initially started to address the provisions of the Prevention of Money Laundering Act. Certified Anti-Money Laundering Professional is an interesting experience for compliance professionals.
Trade-Based Money laundering in Russia is becoming an ongoing problem. Russia is looking after to put forth a strong AML system. In Russia, the banks and financial institutions should fulfill the due diligence requirement. So it will be very beneficial for doing the CAMP course.
Certification Program in Crypto Currency Laundering
Riskpro Learning offers a short-term online AML Certification course related to cryptocurrency i.e Certification Program in Crypto Currency Laundering. This program is basically designed to understand the term cryptocurrency, what are the challenges faced while laundering money through cryptocurrency. One will also get to know how financial crimes are taking place in cryptocurrency. Cryptocurrencies are making huge inroads in the process, and they are actively traded and mined nowadays. The focus of this course is to make Cryptocurrency concepts accessible to people with little to no knowledge. This course is a video learning course. The aspirants would be able to get them in detail knowledge related to cryptocurrency.
Riskpro Learning also offers multiple short-term online AML Certification courses. One of the courses is Certification in Trade-Based Money Laundering that is related to the Proceeds of crime are laundered through the international trade. This certification explains the different methods of trade and the informal value transfer systems.
Benefits of AML Certification in Russia
Regtech Times Academy has started the Certified Anti-Money Laundering Professional course which is a video-based learning certification in the compliance domain. Certified Anti-Money Laundering Professional is an interesting experience for compliance professionals. The international edition of the Certified Anti-Money Laundering Professional program offers an exhaustive set of resources for the students. During the process of completion of this course, professionals develop an understanding of the wide range of terms associated with financial crimes.
To whom these courses are applicable
The above following courses are applicable to the aspirants who want to get established in the compliance domain, or the person who wants a career option in the AML domain. It will be also helpful for beginners who are keen to understand the Anti-Money laundering measures, terrorist financing, fraud, etc.
Learning Outcome from the course
Certified Anti-Money Laundering Professional will help you to understand the overview of International Laws, Deep knowledge of a Politically exposed person, and understand of Risk-based approach to money laundering, AML/CFT regulations laid down by FATF.
Certification in Crypto Currency will help you to understand the overview of cryptocurrency, how money laundering takes place in cryptocurrency, how to combat the financial crimes that are taking place via cryptocurrencies etc.
The certification in Trade-Based Money Laundering will help you to understand the crimes that are are committed internationally. Different unique methods are explained through thr video learning mode.
Cost of AML Certification in Russia
The professionals are in search of doing something related to the AML certification in Russia. They want to do the different types of global certifications. However, the cost of global certifications plays a major barrier to gaining Certification. There are global courses provided all over the world. One of the most popular courses is Certified Anti-Money Laundering Professional which is offered by Regtech Times Academy and should have global recognition. The cost of this course is $300.00 for an individual to complete this course.
Prep Course for the AML Certification in Russia
In addition to the Certified AML Professional program, Regtechtimes Academy also offers the ACAMS Prep Course for the aspirants looking to take up the CAMS certification from ACAMS, USA. This course is a set of 6 simulated exams which would help the Algerian aspirants to pass their CAMS exams successfully. We offer a very cost-effective model for the CAMS Prep course and accept the payments in local currency.
