Reports Handed to Algorithms: How Bank of Russia Requirements Are Accelerating Digital Finance
Russia’s financial sector is rapidly moving toward full automation of accounting and regulatory reporting. Recently, asset manager Sputnik – Upravlenie Kapitalom implemented two domestic platforms – Khomnet:NFO and Khomnet:XBRL – developed by GK Khomnet to overhaul its reporting infrastructure.
From Manual Processes to Automated Reporting
The deployment of Khomnet:NFO and Khomnet:XBRL enabled Sputnik – Upravlenie Kapitalom to fully automate financial, accounting, and tax reporting, followed by the preparation of regulatory disclosures in XBRL format under standards approved by the Bank of Russia. The system ensures compliance with the regulator’s OSBU and EPS taxonomy requirements, reducing the risk of reporting errors and missed submission deadlines.
The upgrade eliminated the need to manually upload data from the back-office system Fansy, improving the accuracy of transaction and quotation records. As a result, employee workload decreased significantly, while operational speed and reporting quality improved.
“Before launching the project, we conducted an in-depth review of the software market and set strict requirements for the solution. We found full compliance with those requirements in Khomnet:NFO. The system offers comprehensive functionality for financial instrument accounting and trust management, which is critically important for us,” representatives of the asset management company said.
XBRL as a Strategic Vector
XBRL is a global business reporting standard adopted in more than 55 countries. However, platforms such as Khomnet:XBRL were designed specifically to meet the regulatory requirements of the Bank of Russia.
Last autumn, the mega-regulator published a draft taxonomy for a new XBRL reporting standard. Under the proposal, major publicly traded companies will be required to submit not only financial statements but also non-financial disclosures in strict digital formats. This shift will require businesses to redesign data collection and accounting workflows. In practice, that means deeper automation of routine processes. As regulatory requirements tighten, demand is expected to grow for domestic IT systems capable of generating machine-readable XBRL reports.
Toward a Unified Standard
The evolution of Russia’s regulatory reporting market has been gradual. Until 2021, XBRL reporting was mandatory for mutual funds, non-state pension funds, insurers, and several other financial market participants. Later, the requirement extended to specialized depositories and credit rating agencies. In 2022, credit history bureaus were added, and in 2023, operators of investment and financial platforms, along with operators of information systems issuing CFA – digital financial assets – were included.
In 2024, self-regulatory organizations in the financial market transitioned to electronic XBRL reporting. Starting in 2026, public companies will begin moving to the same format.
Khomnet:NFO and Khomnet:XBRL were certified and included in the Russian Software Registry by order of the Ministry of Digital Development, Communications and Mass Media of Russia back in 2020. They are not the only domestic IT products capable of automatically generating reports in compliance with mega-regulator requirements, but they illustrate how the local software ecosystem is responding to tightening oversight.
Building Transparency Into the System
Automated reporting is becoming a structural foundation of financial system transparency and a core layer of Russia’s digital economy. For the Bank of Russia, it enhances supervisory analytics. For businesses, it provides regulatory predictability. For the broader economy, it strengthens financial stability.
By 2027, the Bank of Russia plans to expand the list of mandatory XBRL reporting requirements across all categories of financial institutions. Russian developers with hands-on experience in Bank of Russia compliance and FSTEC certification could gain a competitive edge not only domestically but also in jurisdictions building similar digital regulatory environments.
