Currency Control

 

On 16 November 2011 the President signed Federal Laws Nos. 311-FZ and 312-FZ amending the Administrative Offences Code with respect to liability for violations of currency control rules.

The amendments aim to provide for more adequate sanctions for violations of currency control rules. Before the amendments, Russian exporters’ failure to promptly repatriate export proceeds into Russia could result in a severe administrative fine of up to the entire amount of non-repatriated funds. The amendments differentiate liability depending on whether the export proceeds were not repatriated when due or were not repatriated at all. In the former case the fine will be 1/150 of the Central Bank refinancing rate of the amount of funds not repatriated when due per day of delay; in the latter case the liability will be the same as before.

Further, before the amendments, Russian residents’ failure to comply with the terms for submitting reporting forms related to currency operations, as well as supporting documents and data related to currency operations could result in an administrative fine of up to RUB 50,000 (about US$1,600). The amendments differentiate liability depending on the length of the delay in submitting the documents: for example, a delay not exceeding 10 days will result either in a warning or a fine of up to RUB 15,000 (about US$480), whereas in case of a delay of 30 or more days the liability will be the same as before.

The Law entered into force on 28 November 2011.

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For further information please contact Igor Ostapets or Irina Dmitrieva in the Moscow office of White & Case, tel + 7 495 787 3000 .

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