Federal law “On currency regulation and currency control” No. 173-FZ (the Law on currency control) of 10.12.2003 G.
This law is aimed at supporting the stability of the currency and the foreign exchange market of the Russian Federation. The law on currency control contains provisions on currency regulation and control bodies, currency values and operations, currency transactions between residents and non-residents, conditions of reservation and repatriation of foreign currency earnings.
Currency control bodies are:
The Russian government and the Central Bank of Russia (CBR). They are entitled to issue normative legal acts only in cases provided by the law on currency control. These acts must be officially published.
Currency control bodies are:
Central Bank and Federal Executive body authorized by the government of the Russian Federation (not yet defined). They have the right to issue currency control acts only in cases provided by the currency legislation and acts of currency regulation bodies.
Currency control agents are:
authorized banks and professional participants of the securities market (brokers, dealers, depositories, registrars, etc.).
Currency control bodies and agents shall control the performance of currency transactions by residents and non-residents and shall have the right to conduct checks of reporting and reliability of accounting, issue orders to eliminate violations, and apply measures of responsibility for violations of the law.
Currency of the Russian Federation:
In addition to banknotes in the form of banknotes and coins of the Bank of Russia, also funds in Bank accounts and Bank deposits.
Foreign currency:
In addition to the currency of foreign countries, also funds in Bank accounts and deposits in foreign currency.
Domestic securities:
– ruble-denominated securities registered in the Russian Federation
– other ruble-denominated securities issued on the territory of the Russian Federation
Foreign securities:
All securities are not domestic.
Currency values:
Foreign currency and foreign securities.
The residents of the Russian Federation:
– citizens of the Russian Federation, as well as foreign citizens with a residence permit
– Russian legal entities, as well as branches and representative offices of Russian legal entities abroad
– diplomatic, consular and other official representations of the Russian Federation abroad
– The Russian Federation, constituent entities and municipal formations of the Russian Federation
Non-residents of the Russian Federation:
– foreign individuals who are not residents of the Russian Federation
– foreign legal entities that are outside the Russian Federation
– branches and representative offices in Russia of foreign legal entities
– diplomatic, consular and other representations of foreign States in Russia
Currency operation:
– acquisition and disposal of currency values and their use as a means of payment in relations between residents
– acquisition and disposal of foreign currency values, rubles and internal securities and their use as a means of payment in relations between residents and non-residents, as well as between non-residents
– import and export of currency values, rubles and domestic securities
– international transfers of currency values, rubles and domestic securities on the accounts of the same person
In accordance with article 6 Of the law on Currency control, currency transactions are carried out without restrictions, except as provided for in articles 7, 8 and 11 of this Law.
Currency transactions between individuals residents and non-residents with external securities in the amount of up to 150 thousand us dollars within one calendar year are carried out without restrictions.
Currency transactions between residents are prohibited, except as expressly provided by law:
– transactions with authorized banks (loans, collateral, purchase and sale of bills, etc.))
– operations with external securities issued by the Russian Federation
– operations of legal entities with external securities in the implementation of settlements in rubles
Foreign exchange transactions between non-residents are carried out without restrictions, except for foreign exchange transactions with internal securities in respect of which the Central Bank may establish requirements for the use of a special account.
Opening of Bank accounts abroad by residents:
Residents have the right to open Bank accounts in foreign currency in foreign banks that are not located in the territory of the OECD member States or FATF. However, residents are obliged to notify the tax office at the place of their location within one month from the date of conclusion (termination) of the agreement on opening an account. Transfers to accounts abroad are carried out in accordance with the procedure established by the Central Bank, which can only provide for requirements for the reservation by the resident of the amount up to 100% of the transfer amount for up to 60 days before the transfer date.
Opening of Bank accounts in Russia by non-residents:
Non-residents have the right to open Bank accounts (deposits) in foreign currency and in the currency of the Russian Federation only in authorized banks. Non-residents have the right to transfer foreign currency to their accounts in Russia, as well as from their accounts in Russia abroad without restrictions. Debiting and crediting of funds and securities, internal and external securities from a special account and to a special account is established by the Central Bank, which may only require the reservation of the amount:
– up to 100% for a period of up to 60 days before the date of withdrawal (enrollment) or
– up to 20% for up to 1 year.
Return of foreign currency earnings by residents in Russia and its partial sale:
Residents engaged in foreign economic activity are obliged to return to the Russian Federation foreign currency earnings received under foreign trade agreements, as well as in case of non-provision of goods, services or intellectual activity results by non-residents, if payment for goods, services or results of intellectual activity was made by the resident.
Return of foreign currency earnings is not required in the following cases:
– transfer of foreign currency earnings to accounts abroad for the purpose of fulfillment of obligations under the concluded credit agreements and loan agreements concluded with non-resident agents of foreign governments and residents of OECD or FATF member States for a period of more than 2 years;
– construction of facilities by residents abroad on the orders of non-residents for the period of construction;
– to cover the costs of exhibitions, sports events abroad;
– when carrying out offset of counterclaims on obligations between non-residents and non-residents who are transport organizations.
The resident is currently not required to sell a portion of the foreign currency earnings. However, the resident is obliged to submit a certificate of receipt of foreign currency earnings within 7 calendar days from the date of receipt of the proceeds to his / her Bank account. If the amount of the transaction exceeds $ 50,000. USA resident is obliged to submit also the passport of the import/exportall of the transaction.
Import and export of foreign currency and Russian currency from Russia:
Import to and export from Russia of foreign currency and foreign securities in documentary form is carried out by residents and non-residents without restrictions, subject to the requirements of customs legislation.
Individuals, both residents and non-residents can simultaneously export foreign currency in cash in the amount not exceeding $ 10,000 from the Russian Federation. US, without justification of its origin. With a single export from the Russian Federation the amount less than or equal to $ 5,000. The US does not require a Declaration of export to the customs authority. However, the export of an amount exceeding us $ 10,000 is prohibited except if the amount has been previously imported, sent or transferred to the Russian Federation and there is evidence of such import (import customs Declaration), shipment or transfer.
Liability for violation of currency legislation:
Residents and non-residents for violation of currency legislation are subject to criminal, administrative and civil liability.
from Andrey Nikishenko, 2018