Russian Central Bank plans to implement tracking service as part of Financial Message Transmission System

MOSCOW. June 5 (Interfax) - The Bank of Russia plans to implement a message tracking service for users of the Financial Message Transmission System (SPFS), the regulator's Payment Digitalization and Innovations in the Payment Market analytical paper said.

The Bank of Russia's financial message transmission system is an analogue of SWIFT, which ensures uninterrupted transmission of financial messages both within Russia and abroad.

The Central Bank also plans to optimize the process of connecting non-residents to the SPFS, including via a boxed solution. To simplify setting up interaction with financial message transmission systems of other countries, there are plans to implement a standard solution, the report says.

The G7 and EU countries are exploring options for sanctions against banks using the Bank of Russia SPFS, Bloomberg reported. The agency reported that some allies were considering measures aimed at third-country lenders that use SPFS, like SWIFT, to circumvent trade restrictions. The EU is seeking to agree on a package of measures ahead of the G7 summit in June, a Bloomberg source said, but several EU member states are against a complete ban on the use of SPFS as a move like this could affect legitimate transactions and harm relations with third countries.

SPFS users included 556 organizations at the end of 2023, more than a quarter of them (159) were non-residents from 20 countries. Meanwhile, foreign participants sent 2.2 times more financial messages in 2023 than in the previous year, the CBR said.

Previously, the Central Bank had published a detailed list of SPFS participants on its website, but it was taken down in April 2022 after a new wave of sanctions, including against the largest Russian banks.