Currency Regulation in Russia

Russian currency control is governed by the Federal Law "On Currency Regulation and Currency Control" (173-FZ). The key question is whether you count as a currency resident. Russian citizens are residents by default, wherever they live, and must report foreign bank accounts to the tax service unless they qualify for an exemption. Foreign citizens become residents only with a residence permit.

Attorney Elena Petrova advises Russian citizens living in California and foreign investors on accounts, transfers and penalty disputes. The rules have changed many times since 2022, so each situation should be checked against the current regime.

Who Is a Resident Under Currency Law

Currency residency is not the same as tax residency. Residents include all Russian citizens, foreign citizens holding a Russian residence permit, and Russian companies. Non-residents are other foreigners and foreign companies, including those registered in the United States.

A Russian citizen who spends more than 183 days a year abroad is still a currency resident. Such a person, however, is released from several reporting duties. Losing the exemption in one year, for example after a long stay in Russia, brings those duties back.

Foreign Bank Accounts of Residents

A resident individual must notify the tax service within one month of opening, closing or changing details of an account abroad. Accounts with brokers and electronic wallets are covered as well. Resident individuals also file an annual report on movements of funds by 1 June of the following year, with some exemptions for small balances and for accounts in certain countries.

Residents living abroad for more than 183 days in the year do not have to file these notices and reports. Keep evidence of the days spent outside Russia, such as passport stamps or travel records.

Transfers Into and Out of Russia

Individuals may send funds between their own accounts and to relatives, but limits on transfers abroad have applied since 2022. Payments by residents to non-residents for goods and services must follow the rules for permitted currency operations. Non-residents from countries on the government's list of unfriendly states face restrictions on withdrawing funds from Russian accounts.

Banks act as agents of currency control. They may ask for contracts, invoices and explanations, and they can refuse or delay a payment that looks irregular.

Common Violations

Most cases against individuals concern missed notices and late annual reports. Others arise from operations the law does not permit, such as a resident receiving payment for services abroad into a foreign account where that is not allowed.

Penalties Under the Administrative Code

Fines for currency violations are set by the Code of Administrative Offences (KoAP). For reporting errors the fine is a fixed sum. For illegal operations it is a percentage of the amount, which can reach large figures on big transfers. The limitation period for currency cases is two years.

Serious schemes, such as failing to repatriate export proceeds or using false documents in transfers, may lead to criminal liability under the Criminal Code.

Challenging a Fine

A decision imposing a fine can be appealed to a higher tax official or directly to court within ten days of receiving it. Defences include an expired limitation period, the 183-day exemption, procedural errors in the protocol and a minor nature of the breach.

How the Attorney Helps

We check whether reporting duties apply to you, prepare overdue notices and reports, and plan transfers so that they fit the current rules. If a fine has already been issued, we prepare the appeal and represent you before the tax service and the court.

The main channel of communication with the attorney is email: attorneypetrova1@gmail.com.