How to open an account in a foreign bank for an individual. How to open an account abroad
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The world financial and credit system by now has become a perfect, high-tech, global mechanism, and it becomes easier to start using it, “joining” the international community, every day. This makes, among other things, to think about how to open an account in a foreign bank for a citizen of Russia. Contrary to the stereotype, the question is relevant not only for those with impressive fortunes, but also for citizens whose incomes are not so large.
European, American, Asian structures do not formally interfere with such a decision, as well as national legislation (including Russian). However, in practice, the procedure can become a serious "headache" for an unprepared person. It's connected with:
- serious requirements that structures put forward to non-residents - before opening an account in a foreign bank, you will have to collect a voluminous package of documentation and prepare;
- the inconveniences and difficulties that accompany the transfer of funds from one institution to another, if they are located in different jurisdictions;
- strict conditions that the owner is required to comply with in order to keep the account "in good working order;
- the need to comply with the requirements of national regulatory authorities, and so on.
Nevertheless, not trusting the domestic credit system with its ups and downs, citizens of the Russian Federation are actively interested in how to open an account in a foreign bank. natural person, and already at this stage they face difficulties. Let's start with the fact that the representations of foreign structures working within the borders of the country and they themselves are not the same thing. If a bank is open in Russia, then its activities are regulated by the Central Bank of the Russian Federation, issuing a license and monitoring compliance with the requirements of domestic legislation. Consequently, regardless of the source of capital, the subsidiary is not free from the “country” risk, and in order to avoid it, you need to contact an office on the territory of another state.
Is it possible for a Russian citizen to open an account in a foreign bank under such circumstances and how does the national legislation “look at” this?
Legislative aspects of the procedure
The legal norms of the Russian Federation do not interfere with the citizens of the country if they want to receive a bill outside its borders and comply with all the requirements of the law. Exceptions may be separate categories persons - occupying high government and administrative posts, members of the Board of Directors of the Central Bank, some other federal structures, plus their families. The complete list is specified in the legislative norm No. 79-FZ of 05/07/2013.
Is it possible to open an account in a foreign bank for a Russian citizen if he permanently resides in the jurisdiction? Of course, there are no restrictions on the use of all services. For all individuals, regardless of where they are in reality, the procedure is simpler than for legal entities. However, in this case, you cannot conduct business transactions, so many decide to "link" accounts to companies, sometimes setting them up specifically for this.
At the national level, the procedure and peculiarities of working with foreign banks are regulated, first of all, by the legislation on foreign exchange regulation and Instruction of the Central Bank No. 100 of August 29, 2001. If ten to fifteen years ago the rules were extremely strict (for example, it was necessary to obtain permits from the Central Bank), today the procedure is simplified - the currency can be any convertible, it is permissible to open several accounts, managing them without restrictions. But only a few key requirements need to be met:
- open accounts only in structures located in the FATF and OECD member countries, since Russia is involved in international activities to prevent money laundering;
- for a year, withdraw an amount equivalent to no more than 75,000 US dollars - according to the Instructions, it is mainly intended for the exercise of the right to purchase valuable papers and private transactions;
- annually submit to the tax authorities reports in which the movement of money is recorded (balances at the beginning and end of the year, total amounts for crediting and debiting), independently form a declaration, calculate and transfer personal income tax.
The list of permitted operations is also very limited - going beyond its "scope", failure to comply with at least one of the requirements will entail financial sanctions in the amount of 75-100% of the amount of illegal transactions. Also, the tax service must be informed about the fact of issuing an invoice, moreover, no later than 30 days after the completion of the procedure, otherwise a fine will be imposed on the person, which can go up to 5,000 rubles. Before opening an account in a foreign bank, you need to check if the state has tax agreements with Russia - if they exist, funds can be transferred to the budget of the relevant jurisdiction.
The procedure for registration of foreign national accounts
Foreign credit structures also put forward their own requirements for applicants for partnership with them. How can a Russian citizen open an account in a foreign bank if he does not have substantial "justifications" - a residence permit, business, real estate in the country? This is quite possible: not all institutions cooperate only with naturalized persons (although, for example, Swedbank and most structures of the United Kingdom or Singapore do this).
In general, the following accounts are opened for private clients:
- classic settlement and savings and deposit (for the accumulation of interest);
- registered - so that they can be managed from different banks;
- depository, servicing securities and financial assets;
- numbered - for example, in Switzerland, they are used to conduct confidential transactions.
In most cases, the applicant will have to personally arrive at the office (this is required by all structures in America) or meet with his representative on the territory of the Russian Federation. Many institutions, especially those working with a serious clientele, have a manager's on-site service, and some banks conduct telephone or Internet interviews.
How to open an account abroad for Russian citizens so as not to travel abroad? Use an intermediary representative - with the help of your own certified signature (at consulates, partner banks), entrust the work to a professional expert. You can also choose a structure where there is a remote opening service - cards and documents are delivered by courier after their registration. This is how many Baltic banks work, and they, along with Chinese ones, are one of the few who register accounts with small amounts... Typically, the threshold for cooperation for non-residents is 50-100 thousand dollars, and well-known corporations (UBS, Barclays, Credit Suisse), as a rule, place funds from one million.
At the other pole of the comfort of the relationship are British institutions, which can require a huge amount of documents, including utility bills and security recommendations. Swiss structures are often asked to provide at least two letters of recommendation - each bank has its own requirements. The decision whether to grant the petition or not is made by the officer, and refusals are not uncommon. It is imperative to prove the legality of the ownership of funds - to provide income certificates for six months to a year, Russian banking history etc. Also, before opening an account in a foreign bank, an individual will definitely need to present:
- passports and their notarized copies - for applicants and their spouses;
- proof of place of residence - internal passports, utility bills;
- certificates from the place of work, about the composition of the family, no criminal record, and so on.
The potential client writes a statement, attaches to it certified and translated into the required language documentation, after which it is accepted, providing papers for tax office... Further, the application is considered, and the process can drag on for several days, weeks or even months. If everything is done correctly, the client receives the details and can start using the account.
Features of working with foreign accounts
We have already figured out how to open an account abroad for Russian citizens, but there are nuances in its use. You need to remember about the deposit insurance system and the requirements for the minimum balance:
- for offshore structures, they are not burdensome ($ 100-200) or none at all,
- in serious European countries it can go up to 300-500 thousand euros.
Some institutions do not welcome cash replenishment of funds, and for non-cash transfers you will have to take documentation and confirmation of tax registration (in order to present it to the local bank where the accounts are issued). Control traffic financial flows you can through.
Both an organization and an individual can open a bank account abroad. But this is not easy to do. Those wishing to become clients of foreign banks located outside of Russia should prepare for various restrictions, as well as regular reports on the balance and movement of foreign money. Failure to comply with currency legislation is punishable by serious fines, which in some cases reach multi-million dollar amounts.
How to open an account abroad for an individual
Having chosen a bank, you should carefully read its conditions for opening an account by foreigners. Best of all, contact a representative financial institution by email to clarify requirements, procedure and list required documents... Usually in the list binding papers includes:
Russian passport;
international passport;
information about the activities of the applicant and his income;
information about his family members;
certificate that he has no criminal record;
When the papers are collected, a citizen who wishes to have an account in a foreign bank will have to visit two offices: a translation office to prepare English-language versions of documents, and a notary office to certify them. Both visits will require significant expenditures, and they will increase rapidly further on.
Many large foreign banks require a potential client to personally arrive at the foreign office of the organization, where he submits a package of documents and fills out a questionnaire. That is, if an individual permanently resides in Russia, expenses for a round-trip flight, and, possibly, for a temporary stay in a foreign country in this case are almost inevitable. If there is no visa, money will be needed for its registration. Whether it is possible to open an account abroad remotely without leaving for another country should be clarified by phone or through the website of a financial institution. Some foreign banks provide this opportunity.
Then the citizen awaits the decision of the foreign organization. As a rule, the waiting period ranges from 2-3 days to a month. And if the answer is yes, an individual is opened a bank account abroad that does not fall under the jurisdiction of the Russian Federation.
However, the state wants to know about foreign accounts of citizens. Before opening an account abroad, Russian citizens need to study the 12th article of the law "On foreign exchange regulation and control" (Law No. 173-FZ of 10.12.2003). In particular, it says that it is necessary to notify the tax authorities in writing about the opening of a cash account abroad within 30 days. The notification form is contained in the order of the Federal Tax Service No. ММВ-7-14 / [email protected] from 28.08.2018. In addition, every year (by June 1), a foreign currency resident must inform the tax service about how he disposed of "foreign" money during the past year, and what is their balance (Decree of the Government of the Russian Federation of 12.12.2015 No. 1365).
How a company can open an account in a foreign bank
Organizations are very interested in opening an account outside the Russian Federation. Unstable financial market leads to the closure of both small and very large Russian banks. Because of this, the firms that entrusted them with money incur heavy losses, without any compensation from the state.
The company submits an impressive package of documents to the chosen financial institution. In particular, foreign banks, in order to open an account, request:
foreign passports of persons who will be authorized to dispose of the funds stored in the account (Russian passports may also be needed);
power of attorney if the account is opened through a representative;
constituent documents of the company: memorandum of association, articles of association, etc .;
certificates - OGRN, TIN;
order on the appointment of the head and chief accountant;
a document certifying that the organization is not undergoing bankruptcy proceedings;
a license (if it is necessary to conduct a certain activity);
completed questionnaire.
The specified list of documentation can be significantly expanded. banking institution... Before opening a foreign bank account, legal entity(as, by the way, a citizen) needs to document the legal origin of the money, as well as the reason why he needs to become a client outside Russia.
The company is also obliged to notify the tax service about opening an account abroad within 30 days after this event and report on the movement of money on a quarterly basis (Resolution of the Government of the Russian Federation of December 28, 2005 No. 819).
Opening an account in a foreign bank: what you need to consider
When opening a bank account abroad of the Russian Federation, several circumstances should be taken into account:
Banks that open accounts in foreign banks for foreigners do not do it for free. The "entry" cost for new clients has a wide range: in some banks it is equal to 300 euros, in others it reaches 3000 dollars. In addition, you will need to pay annually to maintain a foreign account. The cost of this service also varies - from several hundred to several thousand euros / dollars.
If an individual has opened a cash account in another country, foreign bank will only allow it to be used for personal, not business purposes.
Through accounts located outside the Russian Federation, it is possible to carry out not any operations, but only those that are named in Article 12 of Law No. 173-FZ. Some of them, for example, receiving money from the sale of real estate located in another state to a non-resident, is allowed only on condition that an account is opened with a bank in the territory of a member country of such intergovernmental organizations as the OECD or the FATF.
For carrying out illegal transactions, an individual or legal entity faces an administrative fine in the amount of 75 to 100 percent of the amount of the transaction (Article 15.25 of the Code of Administrative Offenses of the Russian Federation). This article should be read carefully before opening a bank account abroad. It provides for various sanctions for violation of currency legislation.
Simple formality
The reporting is quite simple, says Zakharov: a form of two sheets, on the first - the applicant's data, on the second - information on accounts in a foreign bank. If there are more than one invoices, then the first sheet and several copies of the second sheets, equal to the number of invoices, must be submitted to the Federal Tax Service, he says.
After the IRS receives your report, they may have additional questions. The press service of the Federal Tax Service confirms this: currency control»She has the right to request additional documents.
In this case, the taxpayer has a week to provide the necessary papers - for example, a statement on the movement of money on bank account, says the lawyer legal service CorpLaw.Pro Julia Mikhalchuk. “It is better to get these documents in advance from the bank,” advises Zakharov. According to him, most likely, you may need extracts on the movement. Money and letters on the opening and availability of accounts with such banks.
Mikhalchuk from CorpLaw.Pro also notes that it is not necessary to travel to the country where the bank is located - you can receive statements by e-mail. The lawyer, however, fears that the Federal Tax Service will be able to demand documents with seals. “So far, no one knows how to get around this norm, and perhaps clarifications from the Ministry of Finance or amendments to laws will be needed,” she says.
Immediately after submitting the report, you may have several problems.
Tax problems
First of all, you have to pay taxes. Personal income tax at a rate of 13% is taxed on any income on bank accounts abroad: this is coupon income, and annuity from the lease of foreign real estate, and the sale of securities through management company... Also, since the beginning of 2016, income tax has been imposed on interest on deposits in a foreign bank, recalls Zakharov from Paragon Advice Group.
The 2015 declaration campaign ended on April 30th. Mikhalchuk says that it was necessary to report income received, including to foreign accounts, in the form of 3-NDFL. Failure to pay or incomplete payment of taxes under Article 122 of the Tax Code means a fine of 20 to 40% of their amount.
If the tax on income, for example, received from the rental of real estate, is paid in the same country where the foreign account is opened, and exceeds 13%, then nothing needs to be paid in Russia, notes Klenov from UFG Wealth Management.
But so that the FTS has no questions, it is better to provide her tax return country and payment documents if you manage your property yourself. If the trustee is engaged in this, then you need to get a certificate from him: it is he who in this case is tax agent, says Klenov.
To avoid tax claims for previous years, according to Zakharov, it is possible with the help of a capital amnesty - by July 1, 2016, submit a special declaration. “It is necessary to indicate the balance of the account abroad and attach a notice of opening an account. This removes the possibility of attracting you for tax evasion, ”he says.
Problems with currency legislation
Most Russian citizens are not only tax residents, but also currency residents. This concept appeared in 2012. According to the law on foreign exchange regulation, these are all citizens who have a Russian passport, except for those who have been living abroad for "at least a year" with a residence permit, work and study visas.
Maxim Kandyba, partner at PwC, says that the phrase “at least a year” means: if you appear in Russia for a day, you are a foreign exchange resident. Zakharov, however, believes that the fact of registration at the place of residence or stay is important here. If we are talking about emigration, then the citizen is eventually discharged from his home in Russia, and it is difficult to track his short visits to his homeland for tax purposes, he says. By Russian law on the right to freedom of movement, a citizen is obliged to register at the place of stay within 90 days.
Foreign currency residents have large restrictions on the use of foreign accounts. They are allowed to transfer funds from other banks (including Russian ones), credit interest on a deposit, make cash and profit from converting funds.
All these norms are listed in the 12th article of the law on foreign exchange regulation. In addition, salaries, travel expenses, social payments- pensions, scholarships, benefits. But it is impossible to receive grants for them, the Ministry of Finance specified at the end of 2015. This is a violation of foreign exchange laws.
In countries that are members of the OECD and the FATF, you can additionally credit to foreign accounts loans and credits in foreign currency, income from rental housing, coupon income on securities, as well as income from trust management your funds (if they are managed by a non-resident of Russia). For example, Bulgaria, Montenegro and Cyprus, which are popular among Russians, are not included in the FATF or the OECD.
All operations that are not included in this list are prohibited, otherwise you will face a fine, says Dmitry Klenov, partner of UFG Wealth Management. Paragon Advice Group partner Alexander Zakharov clarifies that the fine can range from 75 to 100% of the amount of the prohibited operation. The same is stated in article 12.25 of the Code of Administrative Offenses.
In fact, everything looks like this: if your foreign account received $ 100 profit from the sale of securities (this operation is not allowed by currency legislation), the penalty can be from $ 75 to $ 100. You can avoid it by taking advantage of the capital amnesty, Klenov admits. It applies to all illegal transactions in foreign accounts on the date of submission of the special declaration, says Zakharov. The declaration can be submitted until July 1, 2016.
Hiding accounts
Reporting to the Federal Tax Service on foreign accounts means a huge number of problems - from obtaining extracts from foreign banks to the possibility of tax and foreign exchange claims. “Everything has been done so that a person no longer wants to use foreign accounts. I believe that most of the citizens will not report, ”says one of the consultants, speaking on condition of anonymity.
What awaits them in this case? According to currency legislation, if you did not report the account at all and the FTS eventually becomes aware of it, you will have to pay a fine of 4,000 to 5,000 rubles. The fine for late information is from 1,000 to 1,500 rubles. The punishment for not having time to provide documents on the movement of funds on the account is about the same: 10 days or less - from 300 to 500 rubles, more than a month - from 2.5 to 3 thousand rubles. A repeated violation will cost 20 thousand rubles.
Violation tax legislation costs more. If you did not report your account abroad to the tax office at all and at the same time received income on it for many years, this is already tax evasion, Klenov argues. In this case, the Federal Tax Service may demand to pay additional taxes and issue a fine: from 100 thousand to 300 thousand rubles. depending on the amount underpaid.
International financial consultant FCP (Financial Management) Ltd. Isaac Becker is confident that the accounts will eventually become known. “Even if you keep silent today, sooner or later the information will appear in the tax service, and later they will knock on you not only for a fine,” he says.
On May 12, Russia signed an international agreement on the automatic exchange of financial information, which includes more than 80 countries. “It will start in 2018, and the first reports will most likely go exactly on the basis of the results of this year,” Zakharov said. However, according to him, for this Russia will have to conclude an agreement with each of the countries separately - only then the mechanism will start working.
Klenov says that while Russia can request information on foreign currency accounts of specific citizens for earlier years - up to 2002. Therefore, Becker advises those who have accounts abroad not to delay and report them to the tax office in time, taking advantage of the amnesty.
What awaits the rentier, student, expatriate and trader when using foreign accounts
Rent from overseas housing
It all depends on where the foreign account is opened, which receives income from rented housing. If in the OECD and FATF countries, then you are acting within the framework of the law, says Maxim Kandyba. If in other countries, the forecast is disappointing: you are violating currency laws. In this case, income from renting out property in any case is subject to personal income tax at a rate of 13%.
Account statement
Tax law:
— 13%
tax if the account is opened in the "allowed" OECD and FATF countries
from 20 to 40% from the sum
Currency legislation:
- fine from 75 to 100%
from 300 rubles. up to 3 thousand rubles.; for a repeated violation - 20 thousand rubles
Account concealment
Tax law:
- requirement to pay additional taxes at the rate 13%
- fine from 100 thousand to 300 thousand rubles... for tax evasion
Currency legislation:
- fine 4-5 thousand rubles
- fine from 75 to 100% credited funds (if the account is not in "allowed" countries)
Withdrawal of money abroad before emigration
This is the simplest case: you yourself transfer money from a Russian account to a foreign one. You simply cannot not inform about opening an account abroad: Russian bank will immediately require a notification with a mark tax service on opening an account in a foreign bank. Otherwise, the translation will simply not be released from Russia, says Alexander Zakharov.
Account statement
Tax law:
- tax 13%
from interest to account balance
- possible penalty for non-payment of tax from 20 to 40% of its amount
Currency legislation:
- possible penalty for being late with a statement of the movement of funds on the account from 300 to 3 thousand rubles; for a repeated violation - 20 thousand rubles.
Account concealment
- Impossible
Foreign University Scholarship
If a person studies abroad, he is not a tax resident of Russia at all, Zakharov believes. However, if the training, as usually happens, began in September, and the student spent more than half a year in Russia, then he remains a tax resident. At the same time, a student may turn out to be a foreign exchange resident if the study lasts less than a year or he comes to Russia from time to time. The very fact of receiving a scholarship does not violate currency legislation in any way: this is a fully authorized operation. The only exception is grants: they cannot be credited to foreign accounts. In addition, the scholarship is not taxed at all in Russia (this is stated in Article 217 of the Tax Code).
Account statement
Currency legislation:
- Possible penalty for being late with a statement of the movement of funds on the account from 300 to 3 thousand rubles; for a repeated violation - 20 thousand rubles
Account concealment
Currency legislation:
- fine 4-5 thousand rubles for lack of account statement
Emigration, salary in a foreign company
You do not violate Russian currency legislation, even if you remain a citizen of Russia. You can receive a salary to an account abroad. Most likely, you are not a tax resident of Russia: you become one only by visiting the country more than 183 days a year. This case assumes that you have withdrawn from registration in Russia and no longer live here, so there is no need to talk about currency residence. Short-term visits to Russia do not oblige you to anything: the requirement to register at the place of stay comes only for trips longer than 90 days. In this case, there is no need to report on foreign accounts. However, if you decide to return to Russia for permanent residence, you will have to report, but from scratch.
Account statement
- Not needed
Account concealment
- Does not bear consequences
Securities trading
This is the most difficult case: the number of permitted transactions with securities in foreign exchange legislation is limited. In fact, only coupon and interest income on securities, as well as payments on bonds, can be received into a foreign account. But at the same time only in the OECD and FATF countries. Since the beginning of 2016, it has also been allowed to transfer income from trust to accounts abroad (if the manager is not a resident of Russia), explains Maxim Kandyba.
All these incomes are subject to personal income tax at a rate of 13%. In this case, the tax is also levied on exchange rate differences: if you bought a bond for $ 100 and sold it for $ 100, then it is likely that you still made a profit in rubles due to the growth of the dollar exchange rate and will pay tax, reminds Filinov from PwC. According to Zakharov of the Advice Group, from January 1, 2018, permission will enter into force to credit the income from the sale of the securities themselves to foreign accounts. But so far this is a serious violation: the penalty for it is 75-100% of the amount of income. At the same time, the redemption of bonds is not an operation for the sale of securities, and therefore is allowed by currency legislation, Zakharov says.
Account statement
Tax law:
- tax 13%
from income (if the account is opened in "allowed" countries)
- possible penalty for non-payment of tax from 20 to 40% from the sum
Currency legislation:
- possible penalty for being late with a statement of the movement of funds on the account from 300 rubles. up to 3 thousand rubles; for a repeated violation - 20 thousand rubles
- fine from 75 to 100%
Account concealment
Tax law:
- requirement to pay additional taxes at the rate 13%
- fine from 100 to 300 thousand rubles for tax evasion
Currency legislation:
- fine 4-5 thousand rubles for lack of report
- fine from 75 to 100% credited funds (if the account was credited with "unauthorized assets" in "unauthorized" countries)
Opening an account abroad is one of the demanded services. Funds abroad may be required by individuals and corporations. It is desirable that the procedure for opening an account be carried out quickly and confidentially. This is especially true against the background of deoffshorization processes. Banks do not need protracted checks and in-depth analysis of each client's transaction.
For whom?
Is it possible for a Russian to open an account in a foreign bank? Yes. The need for this service may arise from persons who intend to conduct an Internet business abroad or simply want to put funds on a deposit at a higher percentage.
How to open a bank account for a foreign citizen:
- Select the type of account and country for investing funds.
- Collect a package of documents and submit them directly to an intermediary or financial institution.
- Register a company (for legal entities).
Let's take a closer look at each stage.
Country selection
Individuals can open an account with a credit institution without intermediaries. However, the list of banks that are willing to communicate with a client is very small. Especially when it comes to maintaining financial transactions in Luxembourg or Monaco. Although against the backdrop of modern political realities, even such industry leaders as Switzerland and Singapore are losing their positions due to pressure from outside international organizations... Respectable banks open an account only after personal communication with the client and depositing minimum amount deposit.
You can open a current account in a foreign bank offshore countries... These financial institutions prefer to work through intermediaries who not only conduct initial check customers and source of funds, but also determine which credit institution is better to cooperate with.
Western European banks are not interested in non-resident cash settlement services. There are very high tariffs for such transactions. For frequent transactions, it is better to open an account with a foreign bank in Estonia or Latvia. Financial institutions in Singapore and Hong Kong welcome foreigners who do business in East Asia, and they only accept deposits for very large sums deposits. It is better to use an account in Switzerland for preserving capital, and not for active trading. Credit institutions set high requirements for the minimum balance, and the number of transactions is limited.
Every year Russians have an increasing interest in the banks of the Baltic countries. In financial institutions, services are provided in Russian for a small fee. Before choosing a specific institution, it is worth clarifying the bank's reliability rating, the size of the minimum deposit and the requirements for foreign clients.
Lithuanian banks, as additional documents, also require a certificate confirming the source of the funds. This could be a personal account statement, contract, or ownership documents. real estate... You may also need a notarized copy of the internal and foreign passport of the beneficiary, translated into English... Some banks register an account only after a personal visit of a manager to a branch of a financial institution.
It is much more difficult to register an account with an Austrian bank. The client needs to prepare in advance a large package of documents, answers to questions about the origin of funds, as well as minimum deposit in the amount of 200 thousand euros. Some financial institutions open an account after depositing € 5,000. This amount is not used as a deposit, but immediately goes to the account and can be used by the client.
Account types
Before opening an account with a foreign bank, an individual needs to select an account type. The highest investment requirements are met. They are designed to diversify assets, consisting of classic and new investment products. It is important here to choose the right strategy - a risky one or with a minimum profit. Such accounts are not suitable for recurring payments. A large commission is charged for the transfer of funds.
For permanent operations, it is better to open an account in a foreign bank with a retail focus. In such institutions, you can open a classic deposit, savings account or use standard investment products. You won't have to overpay for service fees.
The documents
In order to open a current account in a foreign bank, you need to provide:
- a statement with the original signature of the owner;
- a copy of your passport or driving license owner;
- letters of recommendation from other institutions;
- company documentation package.
The deadlines for processing documents depend on the internal rules of the bank. Some institutions open an account within one day, while others check documents for more than a month.
Permitted operations
Individuals can transfer to an account with a foreign bank:
- the amount of interest on deposits;
- the minimum deposit required to open an account;
- cash received as a result of the conversion;
- transfers of RF currency between foreign accounts of two residents or their close relatives;
- resident's transfer foreign currency to the account of another resident, opened with a bank outside the Russian Federation, provided that the amount of the transaction in one day does not exceed $ 500 at the exchange rate of the Central Bank.
Company registration
Offshore companies today are used not so much for doing business as for owning assets and foreign accounts. You can contact an intermediary and buy an already registered company. The paperwork procedure will take one day. It is better for persons who are really ready to do business abroad to register their own LLC. Moreover, a foreign company that owns a Russian firm undertakes to resolve any property disputes within the framework of international law.
Open an account in a foreign bank remotely
The account registration procedure is rather lengthy. You need to collect a large package of documents, translate them into English and notarize them. In order not to waste a lot of time, you can open an account in a foreign bank via the Internet. The main advantage is that the client does not have to personally visit the bank branch. However, it will not be possible to conduct a deal without intermediaries.
The global trend indicates that offshore banking is becoming more expensive. Five years ago, you could open an account for $ 200 and spend the same on annual maintenance. Banks are now doing more transaction verification operations. As a result, the cost of payments and account maintenance fees are constantly increasing.
Offshore
Opening a bank account in a foreign bank is easier for a legal entity than for an individual. This service is provided immediately after the registration of the company. Foreign companies abroad cannot carry out financial work for cash.
You cannot buy an offshore company with an already opened account. The bank can recommend the jurisdiction with which it cooperates. But this does not mean that the specified company will provide the services the client needs. For example, some Latvian banks do not officially accept documents from classic offshore countries such as Anguilla, Antigua, UAE, Panama and Belize.
Tightening the rules
In 2013, Russia became a member of the tax information auto-exchange system. Now she can receive data on foreign accounts of Russians from other countries. By law, Russians are required to inform about the presence of an account with a foreign bank. With the introduction of the new system, it will be easier to track down the "silent".
What does it mean?
A citizen of the Russian Federation has the right to open an account in a foreign bank. However, according to the Federal Law "On Currency Regulation", currency residents are required to notify about the opening and change of account details in a foreign bank. The declaration must be submitted to the Federal Tax Service annually by 01.06. This regulation came into force in 2015.
Restrictions
Before opening an account in a foreign bank, you need to inquire about the restrictions. So, foreign currency residents cannot credit their accounts with income from the sale of real estate and grants. The penalty for violation of this requirement is 100% of the transaction amount. If a citizen works in Estonia, sold an apartment in Tallinn, and credited the funds received to an account in a local bank, then the next visit to the Russian Federation will end in tears. In such cases, you need to open an account with a foreign bank in Moscow, and then transfer funds abroad. This restriction does not apply to persons who have been living and working in Estonia for many years and do not come to the Russian Federation at all.
Reporting
Citizens of the Russian Federation are required to report to the Federal Tax Service on opening, closing, changing details and on the movement of funds on each of the foreign accounts. At the same time, tax authorities may request additional information on individual transactions. A reporting form has been developed specifically for this purpose. The completed declaration can be handed over to the tax officer on your own, sent through the taxpayer's office. Persons who are not registered in the Russian Federation can send a letter to their last place of registration to the territorial office of the Federal Tax Service.
Taxation
Not all foreign currency residents transfer taxes to the RF budget. If a person is not considered a tax resident, then he is not obliged to pay funds to the treasury of the Russian Federation. To a large extent, this also depends on the agreements between Russia and a particular country.
According to Art. 207 of the Tax Code of the Russian Federation, tax residents citizens of Russia are considered who:
- live in the Russian Federation for more than 183 days a year;
- have a residential property or registration at the place of residence in the Russian Federation.
Penalties
If the tax authorities independently find out about opening an account abroad, a fine of 2-3 thousand rubles will be imposed on the taxpayer. In case of violation of the deadlines for submitting reports for up to 10 days, the amount of the fine will be reduced to 500 rubles. For a repeated offense, you will have to pay 20 thousand rubles.
Issue price
Most of the problems arise when withdrawing cash. In Europe, SEPA is in force - a single European payment area. In banks of all European countries, as well as in financial institutions in Hungary, Poland, Czech Republic, Romania, Bulgaria, Sweden and Denmark, you can withdraw funds from cards without commission. But these rules do not always apply. A client who has opened an account in Italy and is trying to withdraw funds in Switzerland should be ready to charge a commission. For interest-free withdrawal funds it is better to use ATMs of Sberbank, which are represented in many countries of Eastern Europe, or Citibank. This international bank has branches in more than one hundred countries around the world. In any country in the world, an operation to withdraw funds from bank cards in "native" ATMs is not subject to commission.
The profitability of deposits is also questionable. In addition to the commission for opening and maintaining an account, the depositor will have to pay income tax... In Switzerland, income of non-residents is taxed at a rate of 35%. The income is accrued on the deposit at a rate of 0.25%, and this is only if the account currency does not differ from the national one. That is, it is impossible to make money on a deposit in a European country. But the client will need to pay commissions for opening and maintaining accounts.
25.06.2018
Foreign banking for non-resident clients has recently become a constant source of news. And if some of them turned out to be quite predictable (especially for those who in one way or another used the services of foreign financial institutions throughout recent years), then others will have to get used to.
If earlier banks fought for a future client, offering Better conditions While clients could afford to choose from a variety of options, now banks carefully select a “suitable” client, taking into account a variety of factors - from the jurisdiction of the company to the business biography of its beneficiary and the legality of the origin of its funds. Under pressure from international organizations and national regulators in the field banking services non-residents are constantly “tightening the screws”.
Nevertheless, a foreign bank account has been and still remains an indispensable tool in international business, since the task of opening a bank account arises for almost everyone who registers a business abroad or expands its boundaries. Therefore, further - about everything in order.
Why do you need a foreign bank account?
Corporate account in a foreign bank is required for convenience of calculations companies with their business partners (customers, suppliers), accumulation monetary assets, payment of mandatory payments, maintenance salary projects, use of corporate bank cards, etc. Such an account can be opened both in the same country in which the company is registered, and in another country or countries.
One of the most important advantages of opening a foreign account specifically for a foreign company (and not for an individual) is no currency restrictions stipulated by Russian legislation for foreign currency residents of the Russian Federation. For foreign companies do not apply obligations to notify the tax authorities about opening a foreign account, submitting reports on the movement of funds on the account, as well as restrictions on crediting funds to the account.
For citizens personal foreign account needed in case of employment or obtaining a residence permit abroad, owning foreign real estate and in many other cases. In addition, many clients simply decide to keep and / or invest part of their funds abroad in order to preserve or increase their personal or family capital. Only for some categories of citizens (senior officials, civil servants) the opening of foreign accounts and the use of foreign financial instruments prohibited by law.
The main disadvantage of a personal foreign account is its very limited functionality. The currency legislation of the Russian Federation allows residents of the Russian Federation to credit to such an account only those categories of funds that are directly named in the law, referring all other operations to illegal. Such restrictions are lifted only if the person loses the status of a currency resident of the Russian Federation.
Account types
Foreign banks usually offer checking and / or savings accounts.
Estimated accounts are intended for regular transactions involving frequent crediting and debiting of funds on the account, which is necessary when the company conducts normal operating activities (trade in goods, provision of services, etc.). Some accounts can work in the settlement mode, however, they require maintaining a constant minimum balance on the account in a certain amount or placing an investment portfolio.
Savings (investment) accounts are opened for the purpose of preserving and / or investing the client's funds and, as a rule, cannot be used for current settlement operations.
How to choose a foreign bank?
Currently, choosing a bank to open a current account for a foreign (especially offshore) company is becoming an increasingly difficult task. It depends on many factors, starting with the ownership structure of the company and the type of its activity, and ending with the specifics of the policy of the national banking regulator.
Here are just a few questions, the answers to which should be found out when choosing a foreign bank:
- Does this bank work with companies (including those from offshore jurisdictions) and non-resident individuals?
- Does the bank offer checking accounts (i.e. accounts for frequent incoming and outgoing transfers)?
- Will this bank accept for servicing a client with this type of activity, with these beneficiaries, with these business partners and directions of payments?
- In what currencies can payments be made (this depends on the availability of an appropriate network of correspondent banks) and are there among them the currencies you need?
- what are the bank's tariffs?
- what are the ratings, reputation, financial indicators and the prospects of this bank?
- and much more.
Therefore, in order to choose a foreign bank for opening a corporate or personal account abroad, we recommend that you contact only those specialists (professional intermediaries and bank agents) who know the current (and constantly changing!) Situation in the field of opening accounts and can objectively assess the chances of opening an account. taking into account all the factors inherent in a particular client and bank.
In which country to open an account?
For the purpose of opening corporate accounts for foreign (including offshore) companies, banks can be divided into three main groups:
1. Banks of Europe. Basically (except for Switzerland, Liechtenstein and Montenegro) these are the banks of the member states of the European Union, which are subject to the requirements of the pan-European regulator - the ECB. Within this group, the following should be highlighted:
- banks of the Baltic countries (Latvia, Lithuania, Estonia);
- banks of Cyprus;
- banks of Central Europe (Poland, Hungary, Czech Republic, etc.);
- banks of Western Europe (Austria, Liechtenstein, Luxembourg, Switzerland);
- other banks (Montenegro, etc.)
Banks of this group continue to be popular when opening corporate accounts for foreign companies. Many of them have Russian-speaking customer support.
However, for the majority of European banks (as well as for any others), more and more time-consuming processing of applications for opening an account, a request from the applicant for various additional information, and also (especially for Western European banks) rather high tariffs are characteristic. And, most importantly, the banks of most of these countries today moved away from the practice of opening and maintaining accounts offshore companies (for example, it is now impossible to open an account in a Latvian bank for an offshore company or for an offshore partnership such as LP or LLP).
Only a few banks, despite the general negative attitude towards offshore companies, continue to consider opening investment accounts of offshore companies on favorable terms for the bank (namely, investing in bank products or maintaining a significant minimum balance), of course, if the client fully meets all other requirements.
2. Banks of Asia(Hong Kong, Singapore).
Asian banks in general are focused on business, one way or another working in the Asian region or with partners from it. They are also characterized by a general trend towards deoffshorization and strengthening of due diligence procedures.
Today, Hong Kong banks have practically refused to open accounts for residents of Russia and other CIS countries or companies with beneficiaries from such countries. In order to open an account in a Hong Kong bank, a face-to-face interview with a Bank manager in English or Chinese is always required without the help of an interpreter (directly in Hong Kong). At the same time, banks consider only those companies that have a real office in Hong Kong (it should be borne in mind that such companies are subject to taxation in Hong Kong).
To date, only Singapore companies can open an account in banks in Singapore, and their directors and shareholders must be residents of Singapore. The director must exercise real authority over the management of the company and have exclusive access to its bank account.
A relative disadvantage of Asian banks is also more complex communication between the bank and the client, due to the lack of Russian-language support, as well as a significant difference in time zones (which is relevant for the European part of Russia).
3. Offshore banks(Saint Lucia, Mauritius, Seychelles, Saint Vincent and the Grenadines, etc.).
Offshore banks are banks in offshore jurisdictions that have traditionally specialized in serving non-resident clients. However, today such banks not only do not have any significant advantages over banks from onshore countries, but also lose to them - primarily because of their offshore image and extremely limited possibilities for settlements with certain countries and in certain currencies.
The point is that most developed countries have a negative attitude towards offshore banks, which complicates the establishment of correspondent relations with them and prevents payments. In particular, for this reason, recently, offshore banks (with the exception of banks in Mauritius) have been experiencing difficulties with settlements in US dollars. Therefore, if you need to pay in USD, as well as with American / European / Russian partners, opening an account in an offshore bank is usually not advisable.
On the other hand, the procedure for opening an account in an offshore bank today practically does not differ from similar procedures in other banks. As elsewhere, the client is obliged to submit the required package of personal and / or corporate documents as part of the due diligence and know-your-customer procedures. An application for opening an account can be considered for a long time. An offshore bank, like any other, will refuse to open an account if the potential client does not comply with the bank's policy and the client's risks for the bank are exceeded. During settlement service offshore banks can as regularly as ordinary banks, request supporting documents for current client transactions.
We also add that foreign banks should not be confused with banks with foreign capital operating in Russia, which, although they operate under the appropriate foreign brands, but, like any Russian banks, obey Russian legislation and the requirements of the Central Bank of the Russian Federation. Foreign banks about which in question here - these are banks located outside the Russian Federation and subordinate to the relevant foreign regulators. In Russia, such banks can operate only in the form of representative offices officially accredited by the Central Bank of the Russian Federation, which do not open accounts and do not carry out banking operations.
Procedure for opening an account in a foreign bank
In order to open an account in a foreign bank, you must:
- Choose a foreign bank.
- In person, visit the bank's office directly abroad, or meet with a bank representative or contact the authorized partners of the bank in your country. A number of banks (in particular, banks in Latvia, Cyprus, Switzerland, Mauritius, Saint Lucia) allow you to open accounts remotely (without going to the bank). In other cases, a personal visit of the future account manager to the bank branch is required (typical for banks in Poland, Hungary, Hong Kong, Singapore, etc.).
- Fill out bank forms and provide a full set of documents required by the bank. If necessary, also provide any additional documents and explanations.
- Wait for the decision to open an account.
Each bank has its own requirements for the form and content of the client's documents. However, generally speaking, the following is required from the client (opening an account for the company):
First, a set of corporate documents (originals or certified copies - depending on the requirements of a particular bank).
Secondly, information about the activities of the client's company, including:
- a description of the business of the company to which the account is opened (often also copies of contracts and invoices confirming the declared activity);
- data on counterparties for incoming and outgoing payments;
- estimated parameters of work on the account (annual turnover, number and frequency of operations, etc.).
The activities of the client's company within the framework of one opened account must be completely understandable bank, legal and more or less homogeneous(ideally, one account - one activity). The declared activity must be similar to the existing resident business of the beneficiary of the company.
Thirdly, the client provides information about the beneficial (that is, the actual, ultimate) owners of the company. This information includes:
- personal identification documents;
- proof of residence address;
- data on the sources of income (this can be any documents confirming the legal sources of the origin of funds: a certificate from the place of work, an employment contract, data on entrepreneurial activity, savings, etc.);
- bank statements and statements;
- letters of recommendation from significant business partners;
- names and activities of existing resident (for example, Russian) companies of the client (including links to their websites, other materials);
- resume with data on education and career (as noted above, it is important that the beneficiary has work / business experience in the area that is declared as the main activity of the company for which the account is opened).
Recently, banks have been paying special attention not only to data about the client (applicant) and his beneficiary, but also about his partners, which should be as clear and transparent for the bank as the future client himself. For example, if your counterparty is a British partnership (LLP, LP), then the bank may be interested in who and what is behind it, up to clarifying the resident business of the beneficiaries of such a partnership. Further, the presence of the counterparty in any sanction lists, or even just contact with third parties from such lists, may become a reason for refusal to open an account.
The period for consideration of an application for opening an account at the present time may be from 2 months or more... There is no accelerated application procedure. At the same time, there are no guarantees that the account will necessarily be opened.
If the application is approved, the client is assigned an account number, the means of access to the Internet account management system are issued, bank cards(if necessary).
Compliance. Due Diligence. Know-Your-Customer
These foreign words have long been familiar to everyone who had to open foreign accounts and fill out bank questionnaires.
Banking compliance is the bank's internal procedures for identifying and assessing the conformity of a client, based both on information provided by the potential client himself and obtained from other sources available to the bank. The Bank collects and analyzes such information in accordance with the know-your-customer principle and, in a broader context, the due diligence principle applied not only in banking practice, but also in business in general.
Compliance with these principles is not a whim of the bank: it is due to the need to comply with the requirements of the national (and for the EU countries also - supranational) regulator and norms aimed at combating money laundering and financing of terrorism (AML / CFT). This work has always been carried out by banks to one extent or another, however, in the last decade, the “rules of the game” have changed dramatically in the direction of tightening. For example, the failure to provide the bank with the documents it requires confirming the origin of the funds received, or a sharp deviation of the grounds (nature) of payments from those that were declared when opening an account, may well become the reason for its closure.
A relatively recent innovation is the requirement to indicate in banking forms a place tax residency of the company and its beneficial owners (as well as their identification tax numbers and information about the active or passive nature of the company's activities) for the purpose of implementing automatic exchange of information according to the CRS standard.
Another complicating factor was the policy of anti-Russian sanctions. In connection with this, a Russian citizen can be refused to open an account either directly or foreign company, the shareholder or beneficiary of which will be a Russian, one way or another appearing in the sanctions lists.
Considering that banks' approach to customer compliance assessment has long ceased to be formal, when opening a foreign account, one must be ready to inform the bank not only of standard information about the company for which the account is being opened, but also
- details of your existing resident business,
- identification and biographical data of the beneficial owners of the company (including detailed work experience),
- comprehensive information about the sources of origin of their funds,
- and other information required by the bank.
Therefore, adaptation to the new rules implies thorough and advance documentation of the operations of your foreign and resident business, personal income, sources of wealth, taxes paid, and not only during work with foreign account, but also for several years preceding the moment when it became necessary to open an account abroad.
The main trends in the field of account opening
So, the choice of reliable foreign banks ready to service the accounts of non-resident companies (especially offshore ones) is currently very limited and continues to shrink. Why? Here are some reasons:
- Refusal from offshore companies. Foreign banks reduce the share of offshore companies in their client portfolio or refuse to serve them altogether (and the criterion may be not only the offshore jurisdiction of the company, but also the lack of real economic content - such companies are called shell companies). Somewhere this will happen at the same time, somewhere - in stages. For example, in light of the well-known events related to the self-liquidation of the Latvian bank ABLV in the spring of 2018, many other banks have stepped up the purge of their portfolios from "unwanted" clients. In Latvia, the decision to stop servicing the accounts of shell companies was made at legislative level... In the very near future, other countries may follow this example, first of all, Cyprus, where the introduction of new requirements for banks is expected in the summer of 2018.
- Business reality. Preference is given to companies whose country of registration coincides with the country of the bank, or companies with a real economic presence in their country (office, assets, personnel), financial statements and paying in it taxes, as well as those who have any connection with the country of the bank in which the account is opened.
- Clients comprehensibility and transparency. Banks strive to accept customers with a fully understandable business, transparent source of income and character cash flows, as well as with completely acceptable (for a number of parameters) beneficiaries and counterparties.
- Strengthening due diligence requirements. Such requirements continue to increase both in relation to potential and existing clients of foreign banks (in particular, on the identification of beneficiaries and documentary confirmation of operations).
- Close to zero odds to open an account are foreign start-up companies (not yet able to confirm relevant experience of previous activities and indicate counterparties), as well as companies representing "high-risk" business categories (for example, blockchain and cryptocurrencies, unlicensed forex, payment systems, gambling business, dual-use goods). destination, precious metals etc.). Traditionally, banks are loyal (subject to other conditions) to international trade, forwarding and logistics activities, understandable IT projects, financial services licensed in the EU countries.
- U.S. dollars. The situation with transfers in US dollars has deteriorated sharply (for example, Latvian banks, as well as a number of offshore banks, have completely refused to open accounts in this currency).
- Sanctions. Banks have increased their attention to various sanctions lists and the corresponding categories of individuals and companies. The presence of “sanctioned” persons among the declared beneficiaries or counterparties (or any connection with them) will entail a refusal to open an account.
- Clients from Russia. Almost targeted discrimination takes place Russian clients(in relation to clients from Russia and other CIS countries, a kind of "presumption of guilt" is formed). However, even such circumstances do not exclude the use of an individual approach and the search for acceptable solutions.
- Automatic exchange. In September 2018, countries of the “second order”, including Russia, Switzerland, Austria and many classic offshore jurisdictions, enter the practical phase of automatic exchange of information on financial accounts according to the CRS standard. This means that data on personal and corporate bank accounts (primarily, accounts of companies with predominant passive income), the beneficiaries of which are residents of the Russian Federation, will be sent to Russia tax authorities countries that have agreed to such an exchange.
It is too early to predict its results, however, if the automatic exchange is fully implemented, it will be possible to talk about a completely different level of transparency. tax information in the world.