Media: Russian Ministry of Finance suggests simplifying currency  controls for foreign subsidiaries of Russian banks

ArmInfo.  The Russian Ministry of Finance has prepared a draft resolution  that provides for relaxed currency controls for foreign banks that are part of  international groups of companies with the participation of Russian  residents. TASS reports this, citing the ministry's press service.

The ministry clarified that such banks will be exempt from the  obligation to notify tax authorities about the opening, closing, or  changes to account details in foreign banks, as well as about the  movement of funds within them. Furthermore, the deadline for filing  reports on foreign accounts it proposed to be extended from 30  calendar days to 30 working days after the end of the reporting  quarter or half-year. These changes will affect Russian companies,  sole proprietors, and other legal entities that are part of  international groups with non-residents. 

"The changes are being introduced due to the difficulty of obtaining  supporting documents from non- residents who are part of the same  international group as Russian companies," the ministry explained.

The press service noted that the initiative aims to reduce the  administrative burden and simplify formal procedures in light of  current international restrictions. The ministry also added that the  measures will allow companies to more efficiently organize document  flow and interactions with foreign entities within international  groups.

Izvestia previously reported on this. According to the publication,  the draft resolution will affect foreign divisions of entities such  as Sberbank in Belarus, VTB in Kazakhstan, Armenia, and Azerbaijan,  and Gazprombank in Luxembourg. As Izvestia noted, the relaxed  requirements could simplify settlements abroad and reduce the burden  on subsidiaries, which are currently required to provide tax  authorities with notifications for each account change.