Monitoring of the Federal Legislation dated 20.07.2005

Federal Law No. 86-FZ of July 15, 2005 on the Amendments to Article 6 of the Federal Law on the Military Duty and the Military Service

Changes the procedure of material support of citizens pertaining to execution of their military duty or entering the contract military service. Citizens undergoing training exercises in the regions of the Far North, similar and other localities with unfavourable climatic or ecological conditions, including the remote ones, shall get coefficients to the salary for the military position and the salary for the military grade (regional, for the training in mountainous regions, for the training in desert localities) and percent mark-ups in the amounts specified for the citizens working and living in the mentioned regions and localities. Also removes a restriction on the amount of the average earnings or stipends at the place of permanent work or study (earlier, the amount could not be greater than Rbl 1,000) for the citizens pertaining to execution of their military duty or their entry in the contract military service.

The Federal Law is entered into force from January 1, 2006.

Order of the Ministry of Transport of the Russian Federation No. 63 of June 8, 2005 on the Endorsement of the Regulation on the Particulars of the Working Time and Leisure Time Regime of the Employees of the Underground

The particulars of the working time and leisure time regime are obligatory when working out the rules of internal labour schedules of the organisation and the schedules of shift work of employees. Train schedules must also be worked out taking into account the Order.

When summing up the working time, the maximum permissible length of the daily work (shift) of the employees working on the line may not be greater than 12 hours, and the work of the locomotive teams - 8 hours and 30 minutes (12 hours if the working time is divided into two parts). When the working time is divided into parts, the length of the working time after the break may not be greater than 4 hours.

Overtime work may not be greater than 24 hours a month per employee and 120 hour a year.

During the working day (shift), the employees get a break for rest and taking meals with the length of at least 30 minutes and not greater than two hours, which is not included in the working time. Workers of the locomotive teams get their break for rest and meals after 3-4.5 hours of work, at least 30-minutes long.

Registered in the Ministry of Justice of the Russian Federation on July 15, 2005. Reg. No. 6804.

Direction of the Central Bank of Russia No. 1585-U of June 22, 2005 on the Invalidation of Some of the Normative Acts of the Bank of Russia

Invalidates the Direction of the Bank of Russia No. 1318-U of August 7, 2003 on the generation and amount of the reserve for operations of credit organisations with residents of off-shore zones (with amendments).

The Direction is entered into force from October 1, 2005.

Registered in the Ministry of Justice of the Russian Federation on July 15, 2005. Reg. No. 6800.

Direction of the Central Bank of Russia No. 1584-U of June 22, 2005 on the Generation and Amount of the Reserve for Possible Losses for Operations of Credit Organisations with Residents of Off-Shore Zones

Credit organisations must build a reserve for the loans granted to residents of off-shore zones, as well as the debts in loans and similar debts available with residents of off-shore zones, as well as for financial instruments where the clients are residents of off-shore zones. The mentioned requirements do not apply to operations carried out through accounts opened in international clearing centres of the European Union, loans and financial instruments where the clients are resident banks of off-shore zones in the presence of the permission of the Bank of Russia and in some other cases.

The amount of the generated reserve depends on the off-shore zone rating as group 1, 2 or 3 and may not be greater than 50% of certain amount.

The Direction is entered into force from October 1, 2005.

Registered in the Ministry of Justice of the Russian Federation on July 15, 2005. Reg. No. 6799.

Order of the Ministry of Finance of the Russian Federation No. 77n of June 21, 2005 on the Endorsement of the Regulation on the Coordination of the Rules of Internal Control of Organisations Buying, Selling Precious Metals, Precious Stones, Jewellery of Them and Scrap of Such Items

Defines the procedure of coordination by the state inspections of assay enforcement of the Russian State Assay Chamber of the Ministry of Finance of Russia of the rules of internal control of organisations registered in the state inspections of assay enforcement and buying, selling precious metals, precious stones, jewellery of them and scrap of such items.

Coordination of the rules of internal control of the mentioned organisations is arranged to implement the Federal Law No. 115-FZ of August 7, 2001 on the combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism.

Registered in the Ministry of Justice of the Russian Federation on July 15, 2005. Reg. No. 6798.

Letter of the Central Bank of Russia No. 101-T of July 15, 2005 on the Measures Applied by the Territorial Institutions of the Bank of Russia to Credit Organisations Servicing Budget Accounts

In cases of revealed facts of illegal servicing by credit organisations of the budget accounts and those of the state extra-budgetary funds by territorial institutions of the Bank of Russia, it is recommended to apply to credit organisations preventive measures, as well as send information of the mentioned violations to the bodies of the prosecutor's office, Federal Treasury and the Federal Service of Financial and Budget Enforcement.

Letter of the Central Bank of Russia No. 99-T of July 13, 2005 on the Methodology Recommendations to Work out the Rules of Internal Control by Credit Organisations for Combating Legalisation (Laundering) of Income Obtained in a Criminal Way and Financing of Terrorism

The new recommendations are introduced to replace the recommendations endorsed by the Operative Direction of the Bank of Russia No. 137-T of November 28, 2001 and take account of the latest changes of the legislation on the combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism. The Letter provides the main provisions of ten programs of implementation of internal control to be worked out by the credit organisation taking into account the nature and main directions of its activities, client base and the level of typical bank risks. Provides additional criteria of increased level of risk, expands and refines the criteria of revealing and the signs of unusual transactions.

Letter of the Central Bank of Russia No. 97-T of July 13, 2005 on the Methodology Recommendations on Organisation of Work in the Credit Organisation to Suspend Individual Types of Operations with Monetary Resources

Individual types of operations may be suspended by the bank to fulfil the Federal Law No. 115-FZ of August 7, 2001 on the combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism. The credit organisation may decide to suspend the operation for two working days in compliance with its internal documents. The suspension begins from the date when the client order must have been fulfilled.

The Letter lists information recommended for inclusion in the internal documents of the credit organisation. The final decision to suspend the operation at the presentation of the employee in charge is recommended for placing with the head of the credit organisation.

Letter of the Central Bank of Russia No. 96-T of July 13, 2005 on the Inclusion of Securities in the Lombard List of the Bank of Russia

The Lombard List of the Bank of Russia shall include now individual issues of the bonds of the OAO "Agency of Mortgage Housing Crediting", OAO "Russian Railways", OAO "Gazprom", OAO "Tyumen Oil Company", OAO "Oil Company of Lukoil", Foreign Trade Bank and the state bonds of the Khanty-Mansiysk Autonomous District.