Currency control and what changes have taken place in the currency legislation

Rate this post

This article will discuss what changes have occurred regarding the currency legislation in 2022.

Currency control is regulated by several regulations.

1. Federal Law No. 173-FZ of 10.12.2003 “On Currency Regulation and Currency Control”.

2. Instruction of the Bank of Russia dated 16.08.2017 No. 181-I “On the procedure for Residents and Non-residents to submit supporting documents and information to Authorized Banks when Performing currency transactions, on uniform forms of accounting and reporting on currency transactions, the procedure and timing of their submission”.

Recent important changes in the currency legislation

The authorities have taken steps to mitigate restrictions that relate to foreign currency transactions with counterparties from abroad. Until December 31, 2022, the tax authorities suspended inspections regarding compliance with currency legislation.

But there are some exceptions, namely, violations of regulations that were adopted after February 24, 2022, and establish a special order of work due to the actions of several foreign states.

I would especially like to highlight the extract from the Ministry of Finance dated 10.11.2022.

The Sub-Commission of the Government Commission for the Control of Foreign Investments in the Russian Federation adopted a unanimous decision to allow residents until 31.12.2022 inclusive to carry out currency transactions related to the provision in favor of non-residents who are not foreign persons.

This is reported by the Ministry of Finance in the published extract dated 10.11.2022 No. 106/1 from the minutes of the meeting of the subcommittee of the Government Commission for Monitoring the Implementation of Foreign Investments.

Published extract No. 106/1 dated 10.11.2022.

https://minfin.gov.ru/common/upload/library/2022/11/main/18_11_2022__05-06-10_VN-59822.pdf

According to the published statement, residents can conduct currency transactions related to the provision of foreign currency in favor of non-residents from friendly countries under loan agreements.

Measures for violations in the field of currency legislation are defined by Article 15.25 of the Administrative Code of the Russian Federation. Those who violate the law may receive a warning or a fine equal to the amount of a fixed amount or a percentage of the amount of the illegal transaction.

Additional measures

Limitations

Some operations are prohibited if there is no permission from the Central Bank.

Until December 31, 2022, a resident is prohibited without Central Bank permits:

• pay for a share, contribution, share in the property of a non-resident company;

• invest in the fixed capital of a non-resident within the framework of a simple partnership agreement.

The Central Bank has introduced a limit on the amount of prepayment to non-residents

From March 27, 2022, a resident has the right to pay an advance only in the amount of 30% of the amount of the contract with a non-resident. However, in April the restrictions were relaxed.

Relief

Resumed the sale of cash currency to citizens.

Since April 18, 2022, banks have started selling currency to individuals again. But you can only sell the currency that has been received by the banks since April 9, 2022.

The Central Bank has relaxed the requirement for the mandatory sale of foreign exchange earnings.

From June 10, 2022, it is not necessary to sell part of the export proceeds, including those credited from February 28, 2022 to June 9, 2022.

Banks have the right to fulfill foreign currency obligations on deposits in rubles.

Russian banks that have been sanctioned have the right to fulfill their obligations on foreign currency deposits and accounts of resident organizations in rubles at the exchange rate of the Central Bank. The relief is valid until September 1, 2022.

Share: