Draft legislation to regulate the use of nominee banks accounts
is being considered by the State Duma.
Further changes are expected before draft becomes law and
nominee accounts can start being used. However, the current
a bank opening a nominee account for a client who is deemed to
be a nominal holder of the account
the nominal holder carrying out transactions with funds
deposited in the account, even though they do not belong to him and
have been deposited there by another party for a particular
the nominal holder and the depositor of the funds entering into
a nominee account agreement regulating ownership of the funds and
the beneficiary to whom the funds are to be transferred on the
the nominee account agreement possibly requiring consent from
the beneficiary for the nominal holder to set up direct debit
payments from the account, following the bank's usual direct
debit forms and procedures
the nominal holder having no right to use the funds for another
the funds being protected from debt enforcement action against
the nominal holder
the nominal holder being obliged to cease dealing with funds in
the account up to the amount stipulated in any debt enforcement
documents against the depositor involving seizure of his monetary
Russian law gives the bank account holder full control over the
account in most situations, although a company's control is
sometimes restricted under an account agreement. The draft law
attempts to address the legal issues related to ownership and
control of accounts, so that there is sufficient certainty for the
bank to be able to accept instructions from the beneficiary to
transfer money deposited in the nominee account.
Companies would still use an ordinary bank account for all their
normal financial transactions, and would only use a nominee account
to transfer money for particular purposes defined in advance.
In a normal account, the beneficiary's money would be pooled
with the account holder's own funds and so could be used to
satisfy claims against the account holder by his creditors.
Beneficiaries would be protected against this risk as regards the
funds they place in a nominee account under the control or
management of the nominal holder. As those funds would not belong
to the nominal holder, they would not be part of his bankruptcy
estate were he to go bankrupt.
Law: Draft of Federal Law No. 393713-4 "On amending
several legal acts of the Russian Federation"
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