Monitoring of the Federal Legislation dated 21.06.2004

Regulation of the Central Bank of Russia No. 260-P of June 15, 2004 on the Procedure of Redrawing by the Authorised Banks of Type S Accounts of Non-Residents Opened in the Authorised Banks Pursuant to the Adoption of the Instruction of the Bank of Russia No. 116-I of June 7, 2004 on the Types of Special Accounts of Residents and Non-Residents

Specifies the procedure of keeping of the special, type S accounts of non-residents in the currency of the Russian Federation by the authorised banks and type S accounts used to register securities opened in compliance with the earlier specified procedure.

From June 18, 2004 (date of entry into force of the Instruction of the Bank of Russia No. 116-I), the authorised banks shall stop opening of the mentioned accounts for non-residents. However, until August 1, 2004, the authorised banks must carry out all operations envisaged in the regimes of these accounts. After this date, operations on these accounts are stopped, and the monetary resources received on these accounts must be returned to the payer. The Regulation lists exclusive cases permitting to use these accounts.

The Regulation is entered into force from June 18, 2004.

Registered in the Ministry of Justice of the Russian Federation on June 18, 2004. Reg. No. 5863.

Information Letter of the Central Bank of Russia No. 6 of June 15, 2004 "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"

If the credit organisation issues own promissory notes and the natural person buys them for cash, with the amount of this operation exceeding Rbl 600,000, the given operation is subject to control on obligatory basis and information on it must be sent to the authorised body.

The Letter explains that operations of purchase (sale) of foreign currencies (including the currency of the Russian Federation) carried out using bank accounts and deposits of natural persons (for example, deposit accounts or accounts for payments using bank cards) are not directly qualified as operations subject to obligatory control. However, in essence, such operation is similar to the operation of purchase or sale of foreign currency in cash. In this connection, credit organisations are recommended to enhance control over the mentioned operations.

Operations of entry of monetary resources on the account (writing off) carried out by a client of the credit organisation on the order of his partners (for example, under the trust, commission or agency contract or when the obligations are fulfilled by the third party) are not subject to obligatory control.