Amnesty for offshore capital

Tue, 30/06/2015

A new capital amnesty law intends to instigate the de-offshorisation of the Russian economy. By Ekaterina Konovalova, Relationship Manager, GSS Russia                       

The Russian President Vladimir Putin signed the Federal Law on the Voluntary Declaration by Individuals of Assets and Accounts (Deposit Accounts) Held at Banks and on Amending Separate Legislative Acts of Russia (On Amnesty of Foreign Capital), which was adopted by the State Duma on 22 May and ratified by the Federation Council on 3 June.

In accordance with the capital amnesty law, individuals who declare their foreign assets will be released from criminal, administrative and tax responsibility for offences committed up until 1 January 2015.

The law aims to create a legal mechanism for the voluntary declaration of property and deposit accounts in banks; to ensure lawful guarantees of safety of capital and property of individuals; to protect their property interests, including outside of the Russian Federation; and to reduce risks associated with possible restrictions on using their capital in foreign countries.