Clifford Chance
Russian currency control: significant changes in foreign accounts rules
2 September 2019
Russia lifts restrictions for crediting individual accounts with foreign banks in OECD / FATF member states which conduct information exchanges under the OECD's Common Reporting Standard ("CRS") while imposing more currency reporting obligations on both Russian individuals and companies in respect of their other (non-bank) financial accounts abroad.
Background
Russia has adopted a restrictive approach to crediting accounts of its currency residents (i.e., companies organised under Russian law, individuals holding Russian passports or foreign nationals living in Russia under residency permits). Russian currency control legislation maintains an exhaustive list of payments which may be directly credited to foreign bank accounts of Russian currency residents (i.e. without the funds initially being credited to their Russian bank accounts). Any payment that is not on that exhaustive list has to be received by a Russian currency control resident in its Russian bank account. Failure to comply with this regime may lead to a fine for the Russian currency control resident of up to 100% of the value of that payment.
While there has been some progress in terms of broadening the list over the past few years, the legislation remains very restrictive.
