Updates to Russia’s Laws on Currency Control in 2021
In Russia, currency transactions are regulated by Federal Law 173-ФЗ, titled “On Currency Regulation and Currency Control”. Since its introduction in 2003, many restrictions have been removed and most currency transactions are now permitted. However, there are still some restrictions remaining, particularly related to foreign currency and non-residents.
So far in 2021, seven amendments to Russia’s law on currency control have gone into effect:
- Federal Law of December 30, 2020 N 499-ФЗ
- Federal Law of February 17, 2021 N 9-ФЗ
- Federal Law of February 24, 2021 N 20-ФЗ
- Federal Law of June 28, 2021 N 223-ФЗ
- Federal Law of June 28, 2021 N 224-ФЗ
- Federal Law of July 2, 2021 N 343-ФЗ
- Federal Law of July 2, 2021 N 353-ФЗ
Overall, these amendments resulted in the following new regulations on currency control:
- Residents may pay insurance companies for transactions related to certain insurance expenses, work or services received, or intellectual activity.
- Residents are allowed to use foreign service providers to electronically transfer money without having to open a bank account. This does not apply to the payment for goods, works, services, results of intellectual activity, foreign trade, or loan agreements. This also does not apply to payment cards provided by a foreign service provider.
- Residents are required to report electronic transactions made without opening a bank account through a foreign provider if the total amount transferred exceeds 600,000 rubles in the year.
- Residents engaged in foreign trade where they transfer goods, perform work or services, or transfer information or intellectual activity to non-residents need to report received funds.
- Organizations authorized by the federal government for conducting trade mission work may transfer foreign currency to their employees for wages and expense reimbursements.
- Insurance payments from non-resident insurers carrying out business activities in Russia may not be deposited into individual resident accounts opened with non-Russian banks.
- Additional specifics for providing monetary security for various financial contracts made with non-residents.