The currency adjustment tool is the direction of the monetary policy of any state. There are many definitions for this action, but all this is currency control. Its main goal is to oversee strict compliance by state executive bodies with requirements in the field of foreign economic and monetary operations. The main body of currency regulation in the Russian Federation is the Central Bank.
Oversight
It is carried out:
1. For settlements in monetary terms and other actions performed with payment units of other states made on the territory of the Russian Federation.
2. For movement of banknotes across the state border of the Russian Federation.
3. For the fulfillment of obligations (expressed in monetary terms) to Russia and its residents.
Chapter 4 of the Federal Law of December 10, 2003 No. 173-ФЗ (Law on Currency Regulation in the Russian Federation, zn. No. 173) gives a clear definition of currency control and the bodies exercising it in Russia, outlines the scope of their competence in the implementation of the tasks and functions assigned to them solves some other issues of currency regulation.
Persons belonging to bodies and agents of currency control
Art. 122 of Law No. 173 fixes the following persons who are entrusted with the function of currency control:
1. The government of Russia.
2. The bodies of the VK.
3. Agents VK.
The bodies exercising such control in accordance with clause 2 are:
1. The Central Bank of the Russian Federation.
2. Executive bodies with appropriate authority given to them by the Government of the Russian Federation.
Agents exercising currency control in accordance with clause 3 are the following legal entities:
1. Banks with the appropriate authority.
2. Participants - professional legal entities of the securities market without the status of a bank.
3. State Corporation Vnesheconombank (VEB).
What operations are classified as foreign exchange
Not all actions in the money market fit this definition. Only certain operations in the Russian Federation fall under currency control.
Among them:
1. Sale and purchase of currency values, their use as means of payment, the parties to the transaction are residents.
2. Contracts between non-residents, a resident and a non-resident regarding the sale of currency and / or securities (securities) (including the use of currency and securities as a means of payment).
3. Transfer of funds in the currency of another state both in the Russian Federation and from it.
4. Currency transfers (transactions) to the settlement accounts of the same legal entity, if these accounts are located in different countries, one of which is Russia.
5. All transfers of funds between non-resident settlement accounts opened in the Russian Federation.
6. Transfers from accounts of both residents located on the territory of the Russian Federation and Russian residents located outside the country.
Central bank
This is the authority exercising foreign exchange control. Authorized by the Government of the Russian Federation to perform the functions of the monetary regulator of Russia. This obligation is assigned to him at the highest level. Legal regulation of currency control in the Russian Federation is stipulated by law No. 173 and Art. 54 of the Law "On the Central Bank of the Russian Federation" dated July 10, 2002 No. 86-ФЗ.
It is the main body of currency regulation in the Russian Federation, and oversees cash flows. Especially control concerns the circulation of banknotes of foreign states.
The powers of the Central Bank are as follows:
1. Regulates the performance of foreign exchange monetary transactions between banks.
2. Draws up binding requirements for credit documents when purchasing banknotes of foreign countries by credit organizations.
3. Regulates the actions of non-residents to open accounts.
four.Carries out related functions in order to fully control the movement of currencies.
5. Introduces restrictions on transfers of foreign funds, including the amount.
Implementation of currency supervision
Supervisory authorities are indicated in paragraph 2 of Art. 22 of Law No. 173, which provides legal regulation of foreign exchange activity in the Russian Federation. The main ones are executive structures authorized by the government. This streamlined value allows us to conclude that the list can be quite large. By its decision, the government can endow VC functions with various bodies and persons, depending on the operations that need to be performed.
Until February 2016, these responsibilities were assigned to the Federal Financial and Budget Supervision Service. However, it was abolished, and its functions were redistributed between the two structures. Today, the currency regulation bodies in the Russian Federation are:
1. The tax service.
2. Customs service.
Tax Service of the Russian Federation (FTS)
The regulation on this government body was approved by Decree of September 30, 2004 No. 506. It enshrines the authority to execute the VK. The Service may track part of operations with foreign currency funds that are within its competence.
The Federal Tax Service as the body of currency regulation in the Russian Federation controls:
1. Compliance by legal entities and individuals with the requirements of currency legislation, regardless of whether the object is a resident or not. The scope of taxation limits in such cases the powers of the Federal Tax Service.
2. Conformity of permits and licenses to foreign exchange transactions carried out by citizens and legal entities.
3. Notification of the Federal Tax Service on the opening / closing of accounts with foreign banks. Further monitors the operations preceding their closure.
Supervision is carried out precisely in that part which is assigned to it by legislative acts, without affecting areas that are within the competence of other control bodies. For example, all currency movement operations are the responsibility of the customs authorities of the Russian Federation. They are also part of the overall supervisory system.
Customs Service of the Russian Federation (FCS)
This is one of the state bodies of currency regulation in the Russian Federation, authorized to carry out VC, in accordance with the functions assigned to it. All his powers are enshrined in the resolution of September 16, 2013 No. 809, which approved the provision on the FCS.
Customs Service Functions:
1. Control over all foreign exchange operations on the movement of products across the borders of the Single Economic Union.
2. Control over the operations accompanying the import of goods and vehicles into the territory of the Russian Federation.
3. Supervision of exports from Russia.
4. Compliance of the issued licenses and permits to all of the listed operations, accompanied by crossing the state border.
All powers are secured by the Law on Customs Regulation of November 27, 2010 No. 311-FZ.
Currency Control Agents
The list of these structures is quite extensive. The main agents of foreign exchange control, according to paragraph 3 of Art. 22 of Law No. 173, these are banks and any credit institutions suitable for the following requirements:
1. Created in accordance with regulatory legal acts and laws of the Russian Federation.
2. Have a banking license issued in the manner prescribed by law.
3. Authorized to carry out operations involving banknotes of foreign states.
Currency regulation authorities in the Russian Federation, or agents exercising such control, include professional legal entities - participants in the securities market. In Law No. 173 they are not completely closed; clarifications are given in Federal Law No. 39-ФЗ dated April 22, 1996 “On the Securities Market”.
In Art. 2 clarified that the participants can be all organizations created in accordance with regulatory legal acts that carry out the following activities:
1. Management of the register of owners of shares and securities.
2. Depository.
3. Securities management.
four.Dealer (forex dealers included).
5. Brokerage.
The powerful state-owned corporation Vnesheconombank is the third agent in foreign exchange control over monetary operations. Competence and authority are defined in the Federal Law No. 82-ФЗ dated May 17, 2007 “On the Development Bank”. The rules governing the status of VEB as an agent of VK are established in paragraph 5, paragraph 3 of article 3 of the Law "On VEB".
Currency regulation in the Russian Federation
Legal acts in Russia are quite accurate. Law No. 173 clearly distinguishes between two concepts. The first is “currency control”. The second is close in meaning, but not identical, “currency regulation”. In the most general sense, currency control is an activity aimed at overseeing strict compliance with the rules established by legislative requirements. This is the first definition. Also, foreign exchange regulation includes the publication of a regulatory framework and laws establishing rules for conducting foreign exchange transactions. This is the second definition.
The main bodies of currency regulation and control in the Russian Federation are identical:
1. The Central Bank of Russia.
2. The government of Russia.
The implementation of monetary regulation measures is usually symbolically divided into 2 levels:
1. Regulatory. Its essence is to develop a legal framework relating to the regulation of foreign exchange transactions in the Russian Federation, as well as its subsequent approval and implementation in practice.
2. Individual. This is a direct application of existing legal acts and the legal framework to a specific situation resulting from actions in the foreign exchange market.
Government and Bank of Russia. These bodies play a leading role in currency regulation in the Russian Federation. They carry out the implementation of tasks to implement the policy of the state in this specific area.
Rights and obligations
Each currency regulation authority in the Russian Federation, the agent is entitled to:
1. Carry out checks, if necessary or require the intervention of executive bodies, to ensure compliance with the requirements of legislative acts by persons participating in foreign exchange transactions in the field of monetary circulation in foreign currency.
2. Verify the documents provided by residents and non-residents about the money transactions conducted to identify their reliability and comprehensiveness.
3. To send inquiries duly executed as appropriate from residents or non-residents to receive information or documents necessary to clarify and understand the relationship between opening an account and conducting cash transactions.
Additional powers granted to VK bodies:
1. Issuance of pertinent instructions to the guilty parties with requirements for the mandatory elimination of violations within the established time limits. This is necessary when detecting illegal transactions falling within the scope of currency control.
2. The prosecution of administrative or criminal liability in cases of gross violation of the currency legislation.
VC Agent Responsibilities
These structures are designed to:
1. To carry out supervisory actions for all participants in the currency legislation.
2. Provide information on their participation in foreign exchange transactions on the territory of the Russian Federation and beyond to the VK bodies.
Currency Control Bodies and Agents: Key Differences
Summing up all the above, we conclude that all parts of the industry system can be divided into separate structures. These are organizations that exercise foreign exchange control, agents who engage in the same activity, monetary regulation bodies for operations with all movements of the money supply. Each of these elements has its own powers and clearly limited competence. But they are included in one common system of currency control of the Russian Federation. We repeat, the main bodies of currency regulation in the Russian Federation are the Bank of Russia and the Government of the Russian Federation. Their main difference from the rest of the system is that they can issue legislative normative acts that are binding.
The Federal Tax Service and the Federal Customs Service have their own legislative powers. According to them, these organizations have the right not only to issue normative legal acts within their competence, but also to exercise full supervision of their proper implementation, if there are violations of currency legislation, have the legal right to apply appropriate measures of responsibility to guilty individuals and legal entities in accordance with regulatory legal basis.
VK agents, in contrast to the above VK structures, do not have such an extensive scope of authority. Their activities are aimed at collecting and transmitting the necessary operational information to VK bodies, as well as overseeing the Federal Tax Service, the main bodies whose main activity is the implementation of currency control in Russia. But that is not all. Currency agents come to the aid of the above bodies: banks, professional legal entities - participants in the securities market, VEB.