ANOSINO, March 1. /TASS/. The Central Bank is drafting a proposal on a many-fold increase of mis-selling fines, Governor of the Bank of Russia Elvira Nabiullina said.
"We are preparing the proposal to increase fines for unacceptable practices in respect of consumers of financial services. Current limits of penalties, up to 0.1% of the charter capital’s minimal size, are pointless, they are not tangible for banks and do not curb benefits from unlawful actions. For penalties to be effective indeed, they must be times higher, at a level comparable for violations of AML/CFT [anti-money laundering and combating the financing of terrorism] - up to 0.1% of the bank’s equity, and if our order is not complied with - then up to 1% of the equity," she said.
Mis-selling is an unacceptable phenomenon as a matter of principle, Nabiullina said. "It must disappear and not merely decline," she stressed.