Readers will recall, in 2014 Russian lawmakers amended RF
Law No. 173-FZ On Currency Regulations and Currency Control dated
10 December 2003 (the CCL) to require Russian resident individuals
(RRIs) to report on the movements of funds on their foreign bank
accounts (the Foreign Accounts).
On 12 December 2015 the RF Government also published Decree No.
1365, introducing the Rules on Submission to Tax Authorities by
Resident Individuals of Reports on Movement of Funds in Accounts
(Deposits) with Banks outside the Russian Federation (the
Rules). The Rules provide three possible types of
paper-based (either by the relevant
RRIs themselves or their authorised representative); and
The first report (for 2015) must be submitted before 1 June
Going forward, RRIs shall submit reports for each calendar year
(the few exceptions noted below) before 1 June of the year
immediately following the reporting period.
Penalties will apply with regard to noncompliance with the
up to 3,000 Rubles for the first
20,000 Rubles for any repeated
In case a Foreign Account is opened midyear, the reporting
period shall start with the account opening date and end on 31
December of the relevant year. In case a Foreign Account is
closed midyear, the reporting period starts on 1 January (or the
date of account opening if the account has been opened after 1
January of that year) of the year when the Foreign Account has been
closed and ends on the date of the closure of the Foreign
Account. In this case the report shall be submitted together
with the notice of account closure within one month of the closure
of the Foreign Account as set forth in Article 12(2) of the
CCL. However, a specific carve out is made for those RRIs who
close their Foreign Accounts during 2015. In such case, the
report must be submitted before 1 June 2016.
While we strongly advise that RRIs show full compliance with
provisions of the laws applying to them, including the requirement
to submit the reports, it should be noted that administrative
penalties for late/non-submission can be extremely modest compared
to the administrative penalty of 75-100% of a currency transaction
amount which applies when a currency transaction is deemed to be an
illegal currency transaction.
Considering the narrow ambit of permitted sources of
income for Foreign Accounts, the risk of performing an illegal
currency transaction when using a Foreign Account is more than
likely. RRIs are strongly advised therefore strictly to
follow the permitted source rules in order to avoid these harsh
1. RF Law No. 218-FZ On Amending Various RF Legislative
Acts dated 21 July 2014.
2. The procedure for submitting the report was supposed
to be established by the Federal Tax Service of the Russian
Federation, but to the best of our knowledge, to date the Tax
Service does not offer such service on its web-page.
3. Article 15.25(6) of the Russian Code of Administrative
4. Which, for the avoidance of doubt, does not
necessarily mean that the transaction itself is forbidden by the
law; performing a perfectly allowed currency transaction with
violation of procedure for its performance will also lead to the
illegality of such currency transaction.
5. Dentons has published a number of newsletters relating
to permitted sources of income for Foreign Accounts. We can provide
you with copies of these upon request.
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