Who monitors the circulation of electronic money and why?

Electronic currency has long been a part of modern society. People get themselves wallets, make transfers, make payments online, and perform a number of other operations. The monthly turnover reaches several million dollars, and this figure is only growing. A logical question arises as to who controls the circulation of electronic money . If the cash is under the supervision of the Central Bank of the country, then what is the principle of controlling the circulation of electronic currency?

Foreign practice is also of interest, which is taken as a basis in Russia as well. How is the circulation of electronic money in Europe controlled? There are many questions, and they all need clarification.

The essence of electronic money

Many countries, including Russia, are closely monitoring the mechanism of electronic money circulation, trying to optimize this process and make it fully controlled by the financial system. And if the control of cash has already been established, then in the situation with virtual currency the process is underway.

The first step in the issue of regulation was taken back in the summer of 2011, when the Federal Law on the National Payment System (FL 161) was adopted. It was in this Federal Law that such a term as electronic money or (to be more precise) “electronic means of payment” was first mentioned.

The essence of virtual money is simple. These are funds that one person provides to another without the obligation to open a bank account, but with the obligation to fulfill financial obligations to third parties. Federal Law 161 clearly stipulates the rights and obligations of EPS (electronic currency operators). This is despite the fact that previously the process of movement of funds was not regulated by anyone.

Electronic currency is a reliable assistant to millions of users in the world. With its help, you can receive benefits that were previously available only for cash. In fact, virtual money is gradually replacing the already boring and more familiar bank cards and banknotes.

If we consider electronic money from a general (international) position, then it is worth highlighting the following features:

1. The ability to store on electronic devices.
2. Issue upon receipt of cash by EPS (electronic payment system) acting as an issuer.
3. The ability to receive funds by various organizations, with the exception of the issuer.

To optimize the circulation of electronic currency, the latter is divided into two groups:

• Electronic means based on plastic cards;
• Internet-based virtual currency .

Electronic money, which belongs to the first category, is a prototype of virtual money. A feature of this tool is its physical form, which looks like a card with an embedded chip capable of storing information on the circulation of electronic money. Today, this variant of the currency is not widely used, due to the popularity and functionality of international "plastic".

Another category of e-currency (based on the global network) is in high demand. The peculiarity of the currency is the absence of a physical medium. Consequently, the mechanism for the circulation of electronic money is purely virtual. All payments take place within the network and do not go beyond it. It should be noted that some EPS issue special cards on which a certain amount is fixed, but they cannot be called a physical carrier. The presence of such "plastic" allows the owner to perform certain actions - for example, to replenish the account.

Regulation of the turnover of electronic currency in the Russian Federation

In Europe and the Russian Federation, the circulation of electronic money is planned to be placed under strict government control. The problem lies in approaches and successes achieved. So, in the Russian Federation, the first steps towards regulation were made in 2014, when a bill was introduced to the State Duma to tighten restrictions in the case of using confidential funds. In early May of the same year, it was possible to adopt Federal Law No. 110, the action of which is aimed at protecting against the legalization (laundering) of money laundering obtained by illegal means, as well as preventing the financing of terrorist activities.

If the transaction amount exceeds 100 thousand rubles (subject to the receipt of money by non-profit structures from non-residents or companies from other countries), then control of the transaction by the relevant organizations is mandatory. In addition, if a person has not been identified, then the daily transfer limit (without opening a bank account) is 15 thousand rubles (no more). The reason for such strict restrictions is the large number of offenses associated with the implementation of fraudulent schemes. Thus, according to statistics from law enforcement agencies, in 2015, about 50 thousand crimes were committed in the financial sector. At the same time, the damage to the state amounts to tens of billions of rubles. It is hoped that the circulation of electronic currency will guarantee a decrease in the countrys losses and protect the financial system from destruction.

Electronic currency turnover in the EU

In the European Union, the issue of regulating the circulation of electronic money is taken very seriously. There, the e-commerce control process is influenced by several directives. The main goal of the legislative acts is to guarantee the transparency of the system, to make the mechanism for the circulation of electronic money accountable to the government.

Key rules regarding electronic currency can be found in two Directives. The first concerns e-commerce (from 2000), and the second - distance selling (released three years earlier). They cover the following points:

• Requirements for ensuring the transparency of EPS operations. By law, every e-commerce company must provide complete information about itself and comply with a number of legal regulations.
• Cancellation rates for purchases within a specific time frame.
• Features of cooperation between countries regarding consumer protection. This point is taken into account in another Directive from 2006.

This is what concerns the circulation of electronic money in Europe. As for the United States, a specially created organization (the Consumer Protection Bureau) protects consumer protection rights there. The latters task is to conduct investigations against enterprises that have violated the law. At the same time, rules and regulations for the protection of citizens are being developed, data is being collected regarding consumer fraud with the subsequent transfer of information to the police.

In the world, there is a practice when Internet resources providing various services (except information) fall under the AML / CFT standards in force in the world. In particular, we are talking about sites operating in the field of Internet payments. If the amount of funds received by such services exceeds a certain threshold, then compliance with the above-mentioned norms is mandatory. In addition, the essence of AML / CFT lies not only in monitoring, but also in the timely detection of suspicious transactions.

An important point concerns the issuers of electronic currencies, which in the EU countries must obtain a license of the appropriate type. At the same time, the regulation of their activities is carried out by the authorities of the state in which the main office of the EPS is located. This feature allows issuers of virtual currencies that have received a license to operate in one country to operate in the rest of the EU. At the same time, the virtual currency that was issued in one EU country can be spent on the resource of another EU country.

Today, most of the issuers of virtual currencies are located in countries such as Germany, Great Britain and other leaders of the world economy. As for the United States, in this country, Internet resources that provide customers with the opportunity to use electronic currency are called financial services.

The control of the circulation of electronic funds in the EU is carried out taking into account the Directive 200/46. The regulations stipulate that the company must have sufficient initial capital to fulfill its obligations to customers. In addition, there are a number of investment restrictions and money management obligations.

As for the AML / CFT type directive, companies issuing electronic money fall under it. There are also a number of restrictions and requirements for customer identification. But in each specific country, they may differ.