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Duma Okays Money Changing
Two draft laws have been introduced in the Russian State Duma that would liberalize Russian currency law. They were written by chairman of the Duma Committee on Credit Organizations Vladislav Reznik, who explained to Kommersant that “we are fulfilling the instructions of the president on the liberalization of currency regulations. The citizens of our country should have the same opportunities as those of developed countries.”
This is a continuation of the liberalization of capital movement begun last May with changes to the law ”On Currency Regulation and Currency Control.” The new amendment will ease restrictions on currency operations by individual residents.
Article 9 of the law ”On Currency Regulation and Currency Control” prohibits all currency operations by residents, with 15 exceptions. Those exceptions do not allow banks to undertake the trust management of sums of foreign currency on the behalf of residents (for operations on the stock market, for example), which was allowed under point 8 of Central Bank Directive 193-U until 2004, when the law came into force. Vladislav Yanykin, vice president of Alba Alliance Bank, commented to Kommersant that “A citizen can entrust the management of hard currency to a foreign bank, but not to a Russian bank.”
Article 9 of the law ”On Currency Regulation and Currency Control” also allows spouses and family members to transfer only $5000 foreign currency among themselves in cashless form, although there are no limits on cash transfers. There is also a $5000 limit on electronic transfers to foreign bank accounts by individuals.
Bankers note that the amendments are mainly a formality. Zenith Bank received Central Bank permission to establish a foreign currency fund in July 2005. The Bank's letter indicated that “trust management is not the acquisition or alienation of currency possessions.” They agree on the need to record existing norms in any case.
www.kommersant.com
All the Article in Russian as of Jan. 22, 2007
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Photo: Dmitry Lekay
