The reform of the Russian currency law

On August 2, 2019, Federal law No. 265-FZ was adopted, significantly changing the requirements of the currency legislation of the Russian Federation. In short:

● Not only bank accounts
From January 1, 2020, the concept of "foreign account" will include not only resident accounts in foreign banks, but also accounts in other financial institutions. Such accounts will be subject to the requirements of Article 12 of the Federal law on currency regulation. The obligation of residents to notify the tax authorities on the opening of such accounts and the movement of funds on them will also apply to accounts opened for residents with non-banking financial institutions (brokers, depositories, etc.).

● Foreign bank accounts will be easier to handle
From 01.01.2020, individuals will be able to receive any amounts from non-residents to their foreign accounts, provided that such accounts are opened in banks located in the territory of the EAEU member States (the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic) or the territory that participate in the CRS with Russian Federation. United States and the United Kingdom do not exchange information with Russia. The accounts in these countries will be associated with increased currency risks.

● Exemptions from the obligation to submit reports on the movement of funds on foreign accounts
Resident individuals will be exempt from the obligation to provide reports on cash movement in foreign accounts if the following conditions are met:

– the foreign account is opened in a foreign financial institution located in the territory of EAEU member state and states participating in the CRS with the Russian Federation;

– the total amount of funds transferred to a foreign account does not exceed the amount of 600,000 rubles or its equivalent in foreign currency, or the balance of funds on a foreign account to which no transfers were made in the reporting year does not exceed the amount of 600,000 rubles or its equivalent in foreign currency.
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