Russia: FATCA compliance for national banks

The Central Bank of Russia has published a letter No. 12­4­5/2568 on 13^th November 2015 for describing the process of how Russian financial institutions (RFI) should apply the Foreign Account Tax Compliance Act (FATCA). In accordance with Federal Law No. 173­FZ of 28 June 2014, RFIs may share information about their foreign clients whose Russian bank accounts are subject to tax. The Federal Law does not need RFIs to register with the foreign tax authorities under the FATCA or any other similar legislation on taxation of foreign accounts. The Central Bank pointed out that the Law gives the responsibility of RFIs to notify the Russian tax authorities about transferring any reports to foreign tax authorities, including reports informing that there are no foreign taxpayers among their clients. The Central Bank also clarified that without clients’ approvals, RFIs are not permitted to share information on their foreign clients with foreign tax authorities.