Currency regulations shall be liberalised by establishing a simple and transparent mechanism for returning financial assets of Russian residents from abroad. So far, such cash funds transactions were prohibited.
The proposed amendments to the to the Federal Law on Currency Regulation and Currency Control will allow Russian tax residents to comply with the law of a foreign country by crediting funds received as a result of foreign securities sale or trust management activity on their accounts with banks located in the territory of a foreign state, and then transferring cash funds to the Russian Federation.
At the present time, the law on Currency Regulation and Currency Control prohibits such cash funds transactions. The law has been adopted by the Russian State Duma, in the first reading.
The new law will allow for more transparency in cross-border financial transactions and the possibility of reinvestment of income on capital placed abroad.
Relationship Manager, Global Securities Services Russia