Currency Control

 

On 28 July 2012 the President signed Federal Law No. 140-FZ amending the Administrative Offences Code with respect to residents’ liability for failure to notify the tax authorities of the opening of overseas bank accounts.

According to Federal Law No. 173-FZ “On Currency Regulation and Currency Control”, Russian residents must notify the tax authorities of the opening and closing of their overseas accounts and change of account details within no more than one month thereafter. The amendments differentiate liability depending on whether (i) notice was not given when due or was given in an improper form, or (ii) was not given at all:

in the first case, liability remains the same as before, i.e. an administrative fine in an amount of up to RUB 1,500 for individuals, up to RUB 10,000 for officers and up to RUB 100,000 for legal entities (about US$ 50, US$ 310 and US$ 3,110, respectively); and

in the second case, liability becomes tougher and the fine may constitute up to RUB 5,000 for individuals, RUB 50,000 for officers and RUB 1 million for legal entities (about US$ 155, US$ 1,550, US$ 31,075).

The Law will enter into force on 29 October 2012.

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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