ANNOUNCEMENT 02 Aug 2014In August 2014, the government of the Russian Federation announced a rule change for personal cross-border financial flows.
NUMBER OF INTERVENTIONS
Russia: Changes in currency control regulations
21 2014 . N 218-
On 2 August 2014, entered into force Federal Law No. 218-FZ, 'On amendments to certain legislative acts of the Russian Federation' of 21 July 2014.
The law introduces liberalising amendments in the Russian currency control legislation by extending the list of allowed currency transactions allowed to be carried out by the currency control residents via their accounts in foreign bank. Currency control residents are Russian citizens and holders of a residence permit, unless they stay abroad for more than one year. In addition, the new law introduces reporting obligation for the residents.
The new law, however, does not remove the effective ban on many types of currency transactions carried by the residents (for example the residents cannot transfer to their foreign bank account their paid by foreign entity employment-related income without the conclusion of a proper employment agreement).