Russian self-regulatory body, Association for Forex Dealers (AFD) has announced on Thursday that the country’s over-the-counter (OTC) forex dealers can now onboard clients with remote verification, scraping the necessity of their physical presence.
The new relaxed rules came into effect on January 11 after the signing of President Vladimir Putin on the amendments.
The law granted the credit institutions and other organizations carrying out transactions with monetary funds or properties regulated under the Bank of Russia to use the unified biometric system (UBS) for remote identification.
“This law, therefore, allows professional participants in the securities market, including forex dealers, to conclude contracts with clients without their personal presence in the office of the company,” the AFD noted.
Clarifying the Local Laws
Established at the end of 2015, AFD was established as a self-regulatory body by the players of the Russian forex industry. Its primary task is to develop standards and regulations of forex dealers and also jump in to resolve disputes between the brokers and clients.
The self-regulatory body received a clarification from the Bank of Russia earlier in June 2020, about the remote verification of the clients. Bank of Russia’s deputy governor, Olga Skorobogatova then confirmed the preparation of the draft amendment to the existing law.
“I know that many have buried the legal forex industry, but I want to draw your attention, first of all, to traders, AFD was created in the interests of consumers of financial services and we followed this goal, despite all the difficulties on his way,” AFD head, Evgeny Masharov, said.
Earlier, the Russian Central Bank reported a decline in complaints against the FX brokers, but then issued a warning after a month, as it spotted a notable increase in solicitations from unregulated brokers.
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