Monitoring of the Federal Legislation dated 12.09.2005

Information Letter of the Central Bank of Russia No. 8 of August 31, 2005 "Summary of the Practice of Application of the Federal Law on the Combating of Legalisation (Laundering) of Incomes Obtained in a Criminal Way and Financing of Terrorism and the Normative Acts of the Bank of Russia Adopted in Execution of It"

The contract of loan concluded by the credit organisation through issue and sale of bonds may not be regarded as a transaction subject to obligatory control in the absence with the credit organisation of information on the gratuitous nature of such legal relations.

When opening an account to a natural person, his personal presence (or of his representative) is necessary regardless of whether or not this natural person has been served by this credit organisation earlier, if there are enough documents in the credit organisation as of the moment of the opening of the account to identify the mentioned client, if there are other bank accounts (deposits) opened for this natural person etc. Such presence is not necessary in the case of prolongation by the credit organisation of the bank deposit contract if after expiry of the contract of the futures deposit, the depositor does not want to return the deposit amount.

The contract of participation in shared construction (investment contract), as well as the claims rights cession contract under the mentioned contract, if they are concluded for the amount equal to or greater than Rbl 3,000,000 (equivalent in foreign currencies), are subject to obligatory control from the moment of their state registration.

The Letter defines the persons qualified as beneficiaries for the purposes of the above Federal Law and international sources containing information on the countries and territories failing to observe the commonly accepted standards in the combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism (as well as those with a higher level of corruption, producing or trafficking narcotic substances and permitting their free circulation ).

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-04-08/224 of August 24, 2005 on the Application of the Value Added Tax When Rendering Audit Services to Foreign Organisations

The audit services rendered by Russian taxpayers to foreign organisations carrying out their activities abroad are exempted form the value added tax on the territory of the Russian Federation.

Information of the Central Bank of Russia of September 9, 2005 "Questions and Answers for the Switchover of the Bank System to International Accounting Standards"

Explains that financial reports of credit organisations drawn up according to International Accounting Standards are presented to the territorial institutions of the Bank of Russia on paper media.

Internal documents of the credit organisation, such as the regulation on financial reports, sheet of regrouping and adjustment of the items of the accounting balance report and report of profits and losses, are not included in financial reports and, therefore, must not be presented within International Accounting Standards. However, the territorial institutions of the Bank of Russia may request them from credit organisations.

For the failure to submit financial reports drawn up to International Accounting Standards within the time limits specified in the Direction of the Bank of Russia No. 1363-U of December 25, 2003, territorial institutions of the Bank of Russia may apply intervention measures envisaged in Article 74 of the Federal Law on the Central Bank of the Russian Federation (Bank of Russia).