Russian companies will be fined for a failure to report on movements of funds in their overseas accounts | Practical Law

Russian companies will be fined for a failure to report on movements of funds in their overseas accounts | Practical Law

This article is part of the PLC Global Finance August 2010 e-mail update for the Russian Federation.

Russian companies will be fined for a failure to report on movements of funds in their overseas accounts

by White & Case LLP
Published on 31 Aug 2010 • Russian Federation
This article is part of the PLC Global Finance August 2010 e-mail update for the Russian Federation.
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On 23 July 2010, the President signed a new law aiming to eliminate gaps in the current regulation of administrative liability for breaches of currency regulations. The law amends the Administrative Offences Code to expand the scope of such breaches. It comes into force on 26 October 2010.
On 23 July 2010 the President signed Federal Law No. 174-FZ amending the Administrative Offences Code. The Law will enter into force on 26 October 2010.
The amendments seek to eliminate gaps in the current regulation of administrative liability for breaches of currency regulations. As such, the scope of the breaches has been expanded to include:
  • Non-compliance with the procedure and terms for submitting reports on the movement of funds in the residents' overseas accounts.
  • Non-compliance with the procedure and terms for submitting supporting documents and data related to currency operations.
  • Violation of the terms for storage of supporting documents and data related to currency operations.