The government decided to ban sharing banking secrets with foreigners
Banks under this law will be required to report inquiries from abroad about their clients to Rosfinmonitoring and the Central Bank. They will be able to satisfy requests from abroad only if they comply with the laws of Russia
The government submitted to the State Duma amendments to the law "On measures of influence (counteraction) on unfriendly actions of the United States and other foreign states." The document is registered in the legislative framework of the parliament.
The amendments provide for a ban on Russian banks to provide foreign countries with data on customers and their operations.
"Credit institutions are prohibited from providing the competent authorities of foreign states with the information requested by such authorities about clients and their operations, except for the cases provided for in part 2 of this article," the bill reads.
As stated in the explanatory note, the bill was developed to minimize the risks "associated with the adoption by unfriendly states of amendments to national legislative acts aimed at obtaining confidential information constituting banking secrets from foreign banks under the threat of penalties."
In addition, banks will be obliged to inform the Federal Financial Monitoring Service and the Bank of Russia about receiving requests from foreign authorities within 24 hours after receiving a request from abroad.
There is only one exception - if a response to a request can be provided if it complies with Russian legislation and regulations.
As previously told by RBC sources, the draft law was developed by the Ministry of Finance. The expert opinion to the bill said that the US Treasury and the US Department of Justice now have the right to demand such data from any foreign banks if they have a correspondent account in the US. A similar right appeared with American government agencies from January 1, 2021, according to the adopted Anti-Money Laundering Act of 2020 (the AML Act). U.S. authorities can request a foreign bank for any account if one of the following conditions is met:
the account is the subject of a criminal investigation in the United States;
the account is subject to anti-money laundering proceedings in the United States;
In relation to this account, the procedure for confiscating funds into US income has been initiated.
The bill does not restrict the application of this norm only to countries included in the list of unfriendly countries, it applies to any foreign states.
The United States and the Czech Republic are now on the list of countries unfriendly to Russia. Participants in the NATO summit in Brussels adopted a statement calling for the exclusion of Russia and the Czech Republic from this list. Russian Deputy Foreign Minister Sergei Ryabkov said that so far there are no grounds to expect a revision of this list. “Before this order, there was simply no legal basis, now it has appeared, and, accordingly, there is no reason to expect that the list will be revised,” Ryabkov said.
According to him, in order for Russia to exclude the United States from the list, Washington must "stop pursuing an unfriendly policy."
Банки по этому закону будут обязаны сообщать о запросах из-за рубежа об их клиентах в Росфинмониторинг и Центробанк. Удовлетворять запросы из-за границы они смогут только в случае их соответствия законам России
Thoughts? How does it relate to Common Reporting Standard ( CRS)?