Clifford Chance

FATCA: Russian Response

23 June 2014

On 20 June 2014 the State Duma (the lower chamber of the Russian Parliament) adopted Federal Law "On Specifics of Carrying Out Financial Transactions with Foreign Citizens and Legal Entities, on amendments to the Code of Administrative Offences and on Abolishment of Certain Legislative Acts of the Russian Federation" ("Law on Financial Transactions with Foreign Taxpayers", or "FTFP Law"). The FTFP Law seeks to address some of the FATCA compliance issues that have been faced by Russian financial institutions after the unilateral withdrawal of the United States from signing the otherwise agreed Intergovernmental Agreement (IGA) with Russia. The FTFP Law still needs to be approved by the Federation Council (upper chamber of the Parliament), signed into the law by the President and officially published, but it is likely that all these steps will be accomplished within the next few days. We set out the key provisions of the FTFP Law.

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