The State Duma of the Russian Federation on Wednesday, April 20, adopted a law that imposes restrictions on Russian credit institutions in providing information to the competent authorities of foreign states, including judicial authorities.
The document was submitted to Parliament by the government in June 2021 and has since been finalized for the second reading. The amendments are included in the law on “counter-sanctions” against the US and other unfriendly countries.
“It is prohibited for a credit institution to provide the competent authorities of foreign states (including judicial authorities) with information requested by such authorities about customers and transactions performed by them, customer representatives, beneficiaries and beneficial owners,” the adopted law says.
It also defines the cases in which the provision of information is allowed. This is the interaction of financial market organizations with persons subject to the legislation of a foreign state on the taxation of foreign accounts. That is, information interaction with tax authorities.
Upon receipt of a request from the competent authority of a foreign state, the bank will have to inform the Central Bank about this fact. In turn, the Central Bank will have to send the information to the federal executive authority.