RBC DAILY. Money transfer system MoneyGram will probably have to buy a bank in Russia. This assumption was voiced by RBC daily noting that the Federal Law “On the National Payment System” obliged international money transfer systems that could operate previously in Russia through representative offices to get registered as banks or non-banking lending institutions. And if Western Union that runs a bank in Russia does not face difficulties, then money transfer systems like MoneyGram and Coinstar Money Transfer will have to shell out — either to buy a bank or to set up non-banking lending institutions, i.e. to earmark at least $5 mln (for a non-banking lending institution), or leave the Russian market, the newspaper argues.
MoneyGram vice president for the CIS, Eastern Europe and Israel Petr Gnatyuk told RBC daily that “currently MoneyGram continues to study the new law and its possible impact on our current and future business model in Russia”. When asked whether or not MoneyGram has plans to buy a bank or a non-banking lending institution in Russia, Gnatyuk said the company is exploring several options, but no final decision was adopted. Gnatyuk added that Russia and the CIS have always been a priority area of business expansion for MoneyGram, and the company plans to expand and solidify positions in this region.
Representatives of international payment system Coinstar Money Transfer told RBC daily that the company’s position on its presence in Russia has not yet been framed, and declined to comment.
If a new business model for Russia does not suit MoneyGram and CMT and they decide to leave the market, monopoly positions could be gained by Western Union that already operates through its subsidiary, Non-Banking Lending Institution Western Union DP Vostok.
The vague picture, RBC daily writes, is also at Russian Post that has in its arsenal money transfer system Cybermoney. In fact, this system also falls within the law on the National Payment System and, consequently, should become either a bank or a non-banking lending institution. The postal services provider generates around 40% from financial services that also include money transfers. Russian Post’s press service was unable to clarify how this issue will be resolved.
