Paperwork Increased For Legal Entities Opening Bank Accounts
Letter № 170-Т from October 30, 2007 from The Central Bank of the Russian Federation has hardened regulations for foreign legal entities opening bank accounts and who do not pay Russian taxes (excluding foreign credit institutions).
Banks are now recommended to request from potential new corporate clients the following additional information:
- Names and addresses of any foreign credit organizations where the potential client holds accounts, as well as what type of accounts they hold and for long they have held them;
- Information about major contractors, the nature and volume of expected transactions to be made using the new bank account;
- Information about any financial reports the potential client would need (or not need) to submit and the names of the organizations they would need to submit them to;
- Financial reporting for the last accounting period (if such exists);
- Letters of recommendation from credit institutions where the potential clients hold accounts;
- Letters of recommendation regarding the founders of the potential client.
The Central Bank’s letter explains that “some credit accounts are actively used for complicated and unusual transactions without obvious economic reasons” and that often the list of participants and contractors includes foreign legal entities using accounts for evading taxes, paying for “gray” (illegal) imports, and money laundering.
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