Putin freed from foreign exchange control of Russians living abroad

Фото: Depositphotos

Russian President Vladimir Putin signed a law exempting Russians who live abroad for more than six months from currency control. From 2018, they will not be able to report on accounts in foreign banks to the Russian tax service, writes the Russian service. Air force.

The document signed by Putin amending the law “On Currency Regulation and Currency Control” was published on the official Internet portal of legal information.

Now any citizen of Russia who has come to the country at least once a year is considered a currency resident. The Russian foreign exchange resident must report to the Russian tax authorities on all movements in their accounts in foreign banks.

Some operations for residents in foreign banks are now prohibited. They, for example, cannot be credited to foreign accounts with income from trusts and derivatives, as well as from the sale of foreign real estate. The penalty for breaking the rules ranges from 75% to 100% of the amount of the prohibited operation.

A fine also threatens those who simply did not report the tax on their account in a foreign bank.

With 2018, the rules change. Now Russians living more than 183 days a year abroad will not have to notify the tax authorities about their foreign accounts.

In addition, according to the new law, citizens permanently residing abroad will be able to freely transfer money between individuals, bypassing authorized banks that are located in Russia. All previously existing restrictions in the framework of exchange controls for them are also removed.

In this case, the days will be counted not in a row, but in aggregate within one calendar year.

For Russians living abroad less than 183 days per year, the restrictions will remain in force. But there will be a number of loosening. For example, they will be able to transfer funds directly to foreign banks from the sale of real estate and vehicles.

True, we are talking about real estate and transport in OECD countries and FATF - an intergovernmental organization that develops standards in the field of combating money laundering and the financing of terrorism. It includes 35 countries, including European countries, as well as the USA, Japan, New Zealand and others.

The need to make changes to the legislation is connected with the fact that from 2018, Russia begins to automatically exchange information with foreign financial organizations. The Russian Ministry of Finance feared that this could lead to an increase in the detectable number of violations.

The most famous case of a fine for violation of currency control became known this fall. A Russian court ordered Russian Nikolai Kuznetsov to pay a fine of 30 million rubles for ordering his father to transfer 616 thousand dollars from Trasnapital Bank to Mosoblbank.

The transfer went through a British bank Barclaysrather than through a Russian bank (although Kuznetsov offered a choice of Russian banks to transfer 3). Because of this, Kuznetsova was awarded a penalty of 75% of the transaction amount.

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