Central Bank of Russia: 18 non-residents from 4 countries join Financial Messaging System in 2024

MOSCOW. April 2 (Interfax) - The number of foreign participants in the Central Bank of Russia's Financial Messaging System (FMS) increased by 18 in 2024, reaching a total of 177 non-residents from 24 countries, the head of the Central Bank's National Payment System Department Alla Bakina said at the State Duma on Wednesday.

"Foreign partners from our friendly countries continue to show interest in working with Russian payment infrastructure despite the current situation. Throughout 2024, non-residents continued to join our FMS system. This year, 18 participants from four countries joined. As a result, we now have 177 foreign participants from 24 countries. This involves interactions with our banks in terms of correspondent account settlements. These are closed, secure channels," Bakina said.

The Financial Messaging System is Russia's alternative to SWIFT, ensuring the uninterrupted transmission of financial messages both within Russia and internationally. It was created in response to the first wave of anti-Russian sanctions in 2014.

In 2023, the FMS had 556 participating organizations, with more than a quarter (159) being non-residents from 20 countries. Previously, the Central Bank published a detailed list of the system's participants on its website, but it was hidden in April 2022 following a new wave of sanctions.

In November 2024, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) issued a warning to non-U.S. financial institutions regarding connections to the FMS. The agency said that joining the FMS after the warning could be considered a red flag and that it was prepared to take more aggressive measures against foreign financial institutions engaging in such actions. Prior to this, in June 2023, the European Union imposed a ban on the use of the FMS by EU banks operating outside Russia.