International Money Transfer Policy: Russia

Banking in Russia is regulated by the Central Bank of the Russian Federation (CBR), and the organisation oversees the whole financial sector of the Russian economy.

Although regulations governing the Russian banking system have been relaxed in recent years, many Federal Laws still apply to the banking sector. There are also some key differences which apply to resident-to-resident transactions and resident-to-non-resident transactions – especially when importing and exporting goods or foreign currency.

Even though it is heavily regulated, there are many popular ways to transfer money in Russia, including e-wallet, bank wire and third-party money transfer operators.

But, before making any transfers to friends, family, or business colleagues, here is a guide to some of the policies, rules and regulations which are in place.

What Types Of Transactions Are Subject To Regulations?

The following transactions are subject to currency regulation in Russia:

• The following transactions are subject to currency regulation in Russia:
• International transfers of funds or securities.
•  All transactions between non-residents and residents.
• Transactions between non-residents in roubles.
• Transactions between residents in foreign currency (foreign currency transfers between residents are prohibited except in a few circumstances).

Depending on the transfer amount, documentation may be required to support the transaction and ensure it proceeds smoothly.

• When making a transfer under 200,000 roubles, a transaction code must be provided.
• Transaction amounts between 200,000 and 3,000,000 roubles require an agreement, invoice, or report.
• For import operations valued over 3,000,000 roubles, an import contract or facility agreement has to be registered at a Russian bank.
• For export transactions over 6,000,000 roubles, an export contract has to be registered.

Currency Regulations Covering Residents And Non-Residents

In Russia, different Currency Control Law regulations apply to foreign currency transactions depending on whether you are a resident or non-resident, and who you are transacting with.

A resident is classed as:

- Any citizen of the Russian Federation.

- Foreign nationals or stateless individuals who live permanently in Russia with a residence permit.

• Legal entities registered under Russian law.
• Representative offices and branches of Russian legal entities based outside the Russian Federation.
• Various diplomatic and consular offices and other official representatives of the Russian Federation, Government of the Russian Federation, regions and municipal units of the Russian Federation.

A non-resident is classed as:

- Foreign nationals who do not qualify as residents.

- Legal entities and organisations registered under the legislation of a foreign jurisdiction and located outside the Russian Federation.

• Russia-based representative offices and branches of legal entities or other organisations, registered under the legislation of a foreign jurisdiction and located outside the Russian Federation.
• Diplomatic representatives, consular offices and other official representatives of foreign countries and international and intergovernmental organisations which are located in the Russian Federation.
• Legal entities with ‘international company’ status.

Foreign currency transactions between residents

Foreign currency transactions between residents are banned in Russia, although there are some special exceptions. As a result, financial contracts may refer to foreign currencies, but the actual payment made must be in roubles.

Foreign currency transactions between non-residents

Any currency can be used freely as payment between non-residents. But any payments in roubles within Russia should be made to and from those non-residents’ accounts held with Russian authorised banks. Cash payments may not exceed 100,000 roubles or the equivalent in a foreign currency.

Foreign currency transactions between residents and non-residents

Foreign currency transactions between residents and non-residents are generally permitted, but subject to a few specific restrictions.

• Residents and non-residents can import and export up to $10,000 value in foreign currency in cash without restriction. But amounts over $10,000 require a written customs declaration.
• Russian banks are now legally required to collect and publish data on foreign trade transactions of residents (in any foreign currency or in roubles) and of non-residents (in roubles). In business, foreign trade contracts must be registered with banks.

Bank Transfer Limits And Regulations

While the use of e-wallets, like STICPAY, are growing in favour in Russia, bank transfer remains a popular way to transfer funds. But there are a variety of limits and regulations in place which govern their use.

A resident can transfer up to $5,000 per day (or the equivalent in other currency) to any resident’s account abroad.

A resident can send money to an account of a close relative in Russia or abroad. But this requires documents confirming the relationship between sender and receiver such as a birth certificate, or marriage certificate.

A resident can send money to their own account abroad. But this requires a tax office Notice of Registration of a foreign account.

All types of money transfers where the two parties are non-residents and residents, or both non-residents, will require a VO Code and the Currency Control & Payments Department may request supporting documents confirming the funds transfer purpose and details.

A VO Code are the letters VO followed by a 3-digit code established by the Central Bank of Russia to describe the purpose of the payment. For example, VO030 (purchases by residents of foreign currencies using roubles).

What Is The Cryptocurrency Policy In Russia?

The Central Bank of Russia has been a strong opponent of cryptocurrency, but in January this year official legal regulations on digital and crypto assets came into effect. And Russia is now even planning to launch its own ‘digital rouble’ by 2023.

Russian law allows the sale and purchase of digital financial assets (DFA), and exchange of DFAs for other DFAs, or similar digital rights.

Russian residents cannot receive digital currencies as payment. But they can mine, trade and own cryptocurrencies — so long as they do not then spend them domestically on goods and services.  

How To Transfer Money To And From Russia

Many options exist to transfer money to and from Russia, and the most common are:

Digital Wallet:  E-wallets like STICPAY allow users to add funds to their digital wallets using credit and debit cards, bank transfers or cryptocurrency and then use the e-wallet service to send funds to others.

International Money Transfer: Using third-party money transfer operators (MTO) to send money electronically for the recipient to collect in cash at a local office or branch.

P2P apps and providers: Ways to transfer money directly between two parties using a third party app or program. Usually though, both the sender and the recipient require accounts with the same third party solution being used.

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