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Switzerland and the Cayman Islands are excluded from the list of states that automatically exchange financial information with Russia
DATE: December 12, 2022 | AUTHOR: AT
On October 28, 2022 the Federal Tax Service approved a new list of countries which automatically exchange financial information with Russia. The decree of the Federal Tax Service enters into force on December 16, 2022.
The following countries are excluded from the list:
• the Cayman Islands.
Consequences for currency residents of the Russian Federation (citizens of the Russian Federation, regardless of citizenship of any other country, residing in the territory of the Russian Federation more than 183 days a year, as well as foreign citizens permanently residing in the Russian Federation):
As of December 16, 2022, money from non-residents of Russia may only be credited on accounts opened with banks located in Switzerland and the Cayman Islands in accordance with a limited list of grounds expressly set out in law .
Crediting these accounts with funds on the grounds not expressly set out in the law (including, but not limited to, the crediting of dividends, coupons, rent from lease of immovable property) from non-residents will be recognized as an illegal currency transaction.
The penalty for violating the ban is from 20% to 40% of the transaction amount, the statute of limitations is 2 years.
Please note that the termination of the automatic exchange of financial information does not terminate the obligation of Russian currency residents residing in Russia for more than 183 days per year, to submit annual reports on the movement of funds on these accounts.
This restriction is not applied to accounts with foreign organizations of financial market located in the territory of the states excluded from the list.
We are monitoring the changes and will keep you informed.