The Federal Law aims to make Russian financial organisations’ activities more transparent when carrying out operations involving foreign citizens or legal entities.
The Federal Law authorises Russian financial organisations to pass on to foreign tax authorities information needed to collect taxes and fees from clients who are foreign taxpayers (with the foreign taxpayer’s consent to pass on this information). The Law also defines the consequences if clients who are foreign taxpayers refuse to give such consent.
The Federal Law does not apply to Russian Federation citizens and legal entities established in accordance with Russian Federation law, in which more than 90 percent of shares (stakes) in the charter capital are directly or indirectly controlled by the Russian Federation or by Russian citizens.