Russian law establishes special regulation for individuals’ foreign accounts. Individuals (Russian currency residents) cannot receive on their foreign accounts the majority of funds transfers. Spending of funds is less problematic, however subject to certain restrictions as well. Fine for non-compliance is 75%-100% out of the amount of illegal funds transfer. For more details please follow… In 2013 amendments to the Russian Administrative Offenses Code introducing significant administrative fines applicable to individuals for non-compliance with foreign accounts regulations came into force. The restrictions to foreign accounts are applied only to individuals that are regarded as currency residents, particularly to Russian citizens (with some exemptions). Thus, a Russian citizen is not considered to be a currency resident after one year of living abroad without visiting Russia. If a Russian citizen crosses the Russian border, a one year term for getting a non-resident status restarts. Residents, with exemption for state officials, can freely open foreign accounts. However Residents must notify within one month Russian tax authorities about opening, closing or changing details of their foreign accounts. Resident individuals can only receive on their foreign accounts types of funds that are expressly allowed by the law. Under the first sight almost all types of funds transfers are forbidden. Thus, residents are not entitled to receive on their foreign accounts the following transfers:
- proceeds from the sale of shares and jewellery;
- stock options;
- salary, if a resident works in a foreign company (in such a case, salary should be transferred to resident’s account with a Russian bank) and others.