|Long-Awaited Amendments to Foreign Bank Account Rules|
The Federal Council of the Russian Federation adopted a draft law “On amendment of the Articles 3.5 and 15.25 of the Code of administrative offences of the Russian Federation and the Articles 12 and 23 of the Federal Law No. 173-FZ dated December 10, 2003 “On currency regulation and currency control” (hereinafter – the “Draft Law”).
The Draft Law now also includes administrative liability of individuals – Russian currency residents (hereinafter – “Residents”) for violation of the obligation to provide reports on cash movements via foreign bank accounts and/or supporting bank documents (hereinafter – the “Report”).
The Draft Law states that the Resident will be entitled to pay fine at the amount of:
l RUB 2.000–3.000 for violation of the established procedure of the Report submission
l RUB 20.000 for the repeated violation of the established procedure of the Report submission
l RUB 300–3.000 for violation of the deadline for the Report submission (depends on the term of delay)
l RUB 10.000 for the repeated violation of the deadline for the Report submission
These amendments will come into force from January 1, 2016. Now, In addition to the already existing transactions, it will be allowed to receive from non-residents to the accounts opened with the banks in OECD or FATF countries:
l funds obtained as the result of disposal of foreign securities, listed on the Russian or a foreign exchange, included in the list of the foreign exchanges mentioned in point 4 Article 27 of the Federal Law no. 39-FZ “On Securities Market” – effective from January 1, 2018;
l Income received from transferring of funds and/or securities into trust management conducted by the non-resident – effective from the date of the official publication of the law.
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on Nov.29, 2015