Law "On Banks and Banking". Article 26: Bank Secrecy

The Law "On Banks and Banking Activities of the Russian Federation" establishes the basic concepts used in this field, formulates key provisions regarding the creation and operation of these organizations. This normative act was subjected to adjustments, supplemented by new standards, taking into account the current economic situation. Let us consider in more detail the law "On Banks and Banking" with the latest amendments.

Terminology

First of all, the basic concepts used by the law "On Banks and Banking Activities" should be clarified. The characteristics of financial institutions are given in Art. 1. It explains the following categories:

1. Credit organization. She is a legal entity that has the right to fulfill Bank operations for profit. Earning income is the main purpose of functioning for such an organization. The legal entity carries out its work on the basis of a license from the Central Bank. A credit institution, as a business company, can be formed on the basis of any type of property.

2. Bank. It is a credit institution, endowed with exclusive rights to carry out a range of operations. These include:

• Attracting funds from legal entities and citizens to deposits.
• Placement of financial receipts at their own expense and on their own behalf on the terms of urgency, payment, repayment.
• Opening and servicing accounts of organizations and citizens.

These are not all the operations that the law "On Banks and Banking" allows. A summary of all allowed services will be presented below.

Structure and Legal Regulation

The banking system of the Russian Federation includes:

1. Central Bank
2. Credit organizations.
3. Representative offices and branches of foreign financial institutions.

Legal regulation of organizations provide:

• Constitution.
• Federal Law "On Banks and Banking".
• Other regulatory acts of the Central Bank.

Operations

Law "On Banks and Banking" in Art. 5 establishes a list of actions that financial institutions are entitled to perform. These include the following operations:

1. Attraction of funds of organizations and citizens to urgent and demand deposits.
2. Placement on your own behalf and use of your resources specified in the previous paragraph of finance.
3. Opening and servicing accounts of organizations and individuals.
4. Making money transfers on behalf of citizens and legal entities, including correspondent banks.
5. Collection of bills, cash, settlement and payment documents, as well as cash services to customers.
6. Acquisition and sale of foreign currency in non-cash and cash forms.
7. Issuing bank guarantees.
8. Attraction as deposits and placement of precious metals.
9. Money transfers without opening an account, including electronic funds (except for postal).

The Law "On Banks and the Banking System" imposes certain requirements on entities that open accounts. In particular, individual entrepreneurs and legal entities must provide certificates of state registration and registration with the tax service. Exceptions are local and state authorities.

Deals

Their list is also provided for in Art. 5. The Law "On Banks and Banking" allows the following transactions:

1. The issuance of guarantees providing for the repayment of obligations in cash.
2. Trust management finances and other property in accordance with agreements with legal entities and citizens.
3. Obtaining from third parties the right to demand the performance of monetary obligations.
4. Carrying out operations with precious metals and stones in the manner prescribed by regulatory enactments.
5. Providing legal entities and citizens with special premises or safes located in them for rent to store valuables and documents.
6. Leasing operations.
7. Providing information and consulting services.

The Law "On Banks and Banking" allows the implementation of other transactions that do not contradict the norms of law. All operations are carried out in rubles, and in the presence of a special permit from the Central Bank - in foreign currency.

Securities

The Law "On Banks and Banking Activities of the Russian Federation" allows for the purchase, issue, sale, storage and other operations with securities that confirm the attraction of financial resources to accounts and deposits or perform the functions of payment documents, as well as for transactions with which special permission is required. Organizations can also take them into trust under appropriate agreements with citizens and legal entities.

Law "On Banks and Banking": accounting (changes)

A credit institution is required to publish information on its work on time. Dates of information are determined by the Central Bank. In accordance with the provisions of the law "On Banks and Banking", accounting in organizations is carried out according to the general rules of accounting. Financial institutions should post:

1. Quarterly - balance sheet and statements on losses and profits, information on the level of capital adequacy, the amount of reserves to cover doubtful loans and other assets.
2. Quarterly - accounting documentation with the conclusion of the audit company (independent expert) on the reliability of the information.

Informing

The Law "On Banks and Banking" (the latest edition) requires a credit institution to provide, at the request of a citizen or legal entity, copies of licenses and other permits, the receipt of which is provided for in regulatory enactments. In addition, the financial institution must, upon request, provide balance sheets for the reporting year. The Law "On Banks and Banking" (with the latest amendments) establishes the responsibility of credit organizations for providing false information and misleading interested users.

Relations with subjects

The Law "On Banks and Banking" (the latest edition) establishes that a credit institution is not liable for the obligations of the Central Bank, and vice versa, except when the latter accepted them. A similar situation develops in relations with the state. Executive and representative bodies do not have the right to interfere in the work of credit organizations. The exception is situations provided for in the rule of law.

Constituent documentation

A credit institution must have all those securities that are provided for in regulatory enactments for legal entities of a given legal type. This is prescribed by the law on banks and banking activity under consideration. Article 10 defines the list of information required to be specified in the charter of a credit company:

1. Trade name.
2. Information about the legal form.
3. Information about the address (location) of administrative bodies and separate divisions.
4. Transfer of operations and transactions under art. 5 of the law in question.
5. Information on the size of the authorized capital.
6. Data on the system of administrative bodies, executive and control, including the procedure for their formation and powers.
7. Other information that is provided in the Federal Law for the charters of legal entities of a given legal type.

Corrections, additions to documents

The procedure for making them is also established by the Law "On Banks and Banking Activities". Changes that are made to the constituent documentation of a credit institution must be registered. Paper, which are provided for in paragraph 1 of Art. 17 Federal Law "On State Registration of Individual Entrepreneurs and Legal Entities" and regulations, are presented to the Central Bank in the prescribed manner. The latter, within a month from the date of filing the documents, makes a decision and sends to the authorized body all the materials that are necessary to make the appropriate adjustments to the Unified State Register of Legal Entities. The registration service shall make an entry on the basis of the received knowledge and documents within five days. Not later than the next day (working) a notice of this is sent to the Central Bank.

Bank secrecy

There is no direct explanation of this definition in normative acts. However, the laws contain lists of information that are classified as bank secrets. In particular, they are present in the Civil Code and the normative act under consideration. However, the objects in them have some differences. As bank secrecy, information regarding the account and deposit is, of course, recognized. In accordance with Art. 857 CC, customer data also belongs to this category. However, the Law on Banks and Banking does not provide for this provision. But in the normative document there is an indication that other information may be classified as a secret, if this is not prohibited in the Federal Law (Article 26). For the disclosure of this kind of information provides liability for the credit institution. The client may also claim damages caused by such actions.