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Changes in the currency legislation of the Russian Federation – a statement of the movement of funds and other financial assets.

Changes in the currency legislation of the Russian Federation – a statement of the movement of funds and other financial assets.

31 August 2020

On August 11, 2020, some amendments to the Federal Law on Currency Regulation and Currency Control came into force.

  1. One of them concerns the addition of the wording “statement of cash flows” – now the law uses the wording “statement of cash flows and other financial assets”.

The introduction of this addition is associated with the introduction of the obligation (from January 1, 2021) to report on accounts not only in foreign banks, but also other organizations of the financial market (brokers, insurance companies, etc.). The current form of the report assumes the reflection of information on the movement of only cash, which causes difficulties when choosing an approach to filling out a report in relation to the movement of other financial assets (in particular, securities) on accounts.

In this regard, in the near future we should expect changes in the very form of the statement of the movement of funds [and other financial assets].

  1. Another amendment concerns the crediting of loans and borrowings in foreign currency to foreign accounts: the changes allow crediting not just the amount of the loan / credit, but any funds under the loan / credit agreement (in particular, both the loan body itself and the interest on it) … At the same time, the requirements for the list of states and the term of treaties remain:
  • The account must be opened in a member state of the EAEU or in a jurisdiction that provides automatic exchange of information with Russia;
  • The term of the loan / credit agreement must be at least 2 years.

An important feature: this amendment applies only to those loan agreements that are not subject to the requirements for repatriation established by Federal Law No. 64-FZ of 03.04.2018, that is, to contracts concluded before 04.14.2018.

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31 August 2020
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