Bank account in Europe to an individual. How to open an account with a foreign bank - registration procedure, list of required documents, recommendations

After changes in Russian laws, citizens became available to open deposits in banks of other states. An account for a business in a foreign bank will be required for an entrepreneur if he is going to conduct business with foreign partners. In addition, often foreign banks offer interest on deposits, significantly different from what Russian financial institutions provide. Therefore, Russians are more willing to trust them with their savings. Anyone can open a deposit, but this procedure is not so simple. We will figure out what nuances distinguish opening an account with foreign banks, what is necessary for this, and how reliable is this way of depositing funds.

Legal regulations

Today, Russian citizens do not need permission from the Central Bank in order to have accounts abroad. The law on the regulation of foreign exchange transactions allows residents of the Russian Federation to open foreign currency deposits. The only condition for this is the notification of the tax authority. The period during which a citizen is required to provide information is also determined. He is one month old. Violation of this rule will entail a fine of 5 thousand rubles.

In the framework of the fight against corruption, a circle of persons who were forbidden to have foreign accounts was determined. These include senior officials, the Prosecutor General and his deputy, as well as members of the Board of Directors of the Central Bank of the Russian Federation. Violation of the rules is considered by a specially convened commission, which decides on the punishment of a civil servant who has violated the law.

How to open an account in a foreign bank in Russia

Most citizens of the Russian Federation mistakenly believe that we have representative offices of banks in other countries. The confusion over the question of whether it is possible to open an account with a foreign bank in Russia creates a large number of foreign subsidiaries. However, in reality, international financial organizations do not work in our country. The subsidiaries of foreign banks, although based on foreign capital, are subordinate to the Central Bank, like domestic ones, that is, they operate in accordance with Russian law. Therefore, contributions to them are not insured against risks.

Foreign banks approach the choice of customers quite strictly, so it is often difficult to open an account on your own. You need to have sufficient knowledge of English to negotiate with foreign managers. In addition, it is required to collect a package of documents that is individual for each bank. Therefore, it is most reasonable to turn to the services of intermediary firms that provide assistance in resolving such issues. Specialists will tell you how to open an account in a foreign bank for a Russian citizen, help you choose more favorable conditions. However, you need to be careful, in this area there are many scammers who need only a deposit number and a sample signature of its owner.

Account for doing business abroad

An entrepreneur who wishes to conduct his business abroad or organizes international online trading must have at his disposal an account opened with a bank in an offshore jurisdiction. These financial institutions provide a streamlined service that allows you to perform various financial transactions.

A businessman should be prepared for the fact that the bank will be interested in the goal of opening an account, the type of activity that the company conducts, as well as its financial turnover. Attention will be paid to business partners, if any. The minimum set of documentation consists of:

• statements;
• copies of personal documents;
• recommendations from other banks;
• package of constituent documents.

It should be noted that many financial organizations refuse to work with little-known companies or players in the Forex market.

Account Opening Methods

A citizen has the right to use a foreign currency account in a bank of a foreign state only for personal purposes, that is, to preserve and accumulate finances or make investments. Use it for business is unacceptable. Duration of registration from 7 days to six months. To open an account, you must personally visit the country in which the selected bank is located. After providing the necessary papers and filling out the forms, it remains to wait for a negative or positive decision.

For those who are interested in how to open an account in a foreign bank for an individual without leaving Russia, the second option is suitable - contacting intermediaries. The services of such firms will cost from 200 to 12 thousand dollars. The depositor will only need to assure the sample of personal signature at the consul or in the subsidiary of the selected bank. It may be that the depositor will have to communicate with the manager through the telephone network or personally meet with him in the Russian capital before opening an account.

Banks have various requirements for the list of required documents. The minimum set, as a rule, includes references:

• on the income of an individual;
• the absence of a criminal record;
• about the composition of the family.

Attached are copies of the passports of the depositor himself and his wife signed by a notary, as well as receipts confirming the absence of debt for housing services.

The managers of subsidiaries of western banks will be able to facilitate the opening of a foreign account. The existing relationship between them will significantly accelerate the process. Free help can be obtained using the Private banking segment. A similar financial service is provided, for example, by Promsvyazbank, Sberbank, or Russian Standard.

Foreign Account Management

You can replenish the deposit both in cash and by bank transfer through Russian banks. When you personally deposit currency into foreign accounts, you will need to confirm the legality of its acquisition. To transfer money, Russian financial organizations require a notice on opening an account in a foreign bank by an individual with a note on tax registration.

Foreign deposits are managed in several ways. Here is a list of them:

• by bank cards;
• using checkbooks;
• via courier mail;
• online banking connection;
• facsimile.

The security system protects the funds of the investor through specially designed codes and ciphers, dedicated communication channels.

Instructions for opening an account abroad

The first step should be to choose a country. Many Russians opening a deposit want to deal with banks in Western Europe. Unfortunately, the financial institutions of these countries are not interested in serving non-residents. A more suitable option would be the Baltic banks. Swiss credit organizations are suitable for saving and increasing capital. But the number of operations with such accounts is limited, in addition, the balance of the deposit should be quite large. In Southeast Asia, it is more profitable to open an account for business, ordinary deposits here are reluctant to accept.

After you decide on the country, you need to choose a suitable bank. The decisive role here is played by such factors as:

• reliability rating;
• amount of minimum contribution;
• ease of account management.

The next step is the submission of the application and the necessary documents.  Some banks insist on the personal presence of a potential depositor. When making a decision, it will not be amiss to take an interest in the deposit insurance system. In all countries, the schemes of work of such companies are similar, but sometimes the amount of payments varies sometimes significantly.

At the next stage, you need to determine the type of account.  If this is a current deposit, involving constant replenishment or withdrawal, the interest on it will be low. Those wishing to increase their savings must expect that funds cannot be withdrawn before the end of the contract. For those who want to participate in exchange trading, selling and buying shares of Western companies, an investment account is suitable.

Pros and cons

Foreign banks pay great attention to security and the secret of deposit is not an empty phrase for them. That is why many reputable businessmen prefer not to keep their savings in Russia. In addition, such a preservation of funds gives their owner a certain status. A big plus of opening an account with a European bank is not only reliability and security, but also the possibility of obtaining citizenship of the country where the savings are stored.

The disadvantages include the need to pay for intermediary services when opening a deposit from Russia. An additional obstacle is the need to collect additional information. In addition, trusting money to a foreign bank, the Russian is obliged to notify state authorities about this.

Confidentiality issues when working with an account abroad

Bank secrecy legislation provides ways to protect the information communicated to the bank by the client. So, for example, liability is established for bank employees for the disclosure of the data known to them, as well as the restriction of access to this information by third parties.

Despite the fact that banks pay a lot of attention to security issues when working with a client, the possibility of disclosing information as a result of incompetence or negligence of employees cannot be ruled out. Such cases are quite rare, but no one is safe from them.

In addition, the client must promptly inform the bank about the change of phone number, email address, etc. Since a situation may arise when the account holder is not available (does not answer calls and letters), and the bank needs to receive certain documents from it (for example, documents to justify the payment). In this case, bank employees can (from old memory) turn to the producer, who at one time helped the client open an account abroad.

At present, categorical statements of confidentiality by banks cannot be trusted, since the laws of most countries stipulate liability for financial institutions for "non-reporting". And along with this, responsibility has been established for notifying the client about the “denunciation”. And if the bank suspects that the client’s actions are unlawful, a certain form is filled out, which is sent to the competent authorities with information about the bank’s suspicions.

Is it possible to monitor the status of the company's account in real time?

Today, due to the widespread use of Internet Banking services, it is possible in real time to receive timely and complete information about the status of an account abroad, as well as about the movement of funds through it. It is possible at any time convenient for the client not only to find out information about the balance of funds in the account, but also to make any payment without calling the bank or using a fax.

Recently, even the most conservative Swiss banks on this issue have been moving towards their customers: they also provide access to the Internet banking system, however, as a rule, this happens with some restrictions. Such a system works in view only mode: the client can track the status of his account abroad, but at the same time he cannot make any transactions.

How can I manage a bank account abroad?

There are several methods for remote control of a foreign bank account. For example, the “personally known” method, which is traditional for banks in Switzerland, Luxembourg, Liechtenstein: a banker gets to know a client during his first meeting, and then receives instructions from him by phone. In this case, the customer is initially identified by a code word, and then by voice or other personal characteristics known to the banker.

In addition, many banks offer other identification methods: faxes using special code tables, encryption of instructions, and other encoding devices. So, some Swiss banks ask the customer to call the bank in addition to confirm the fact of sending a fax message.

Moreover, most clients recently prefer to manage a bank account abroad using electronic controls, making international payments on-line using Internet banking. Various options of the Bank-Client system are offered to customers: some banks offer customers to go to their personal page through the bank’s website to make payments, other banks offer software that the client purchases from the bank and installs on their own computer, after which it gets control an account with a foreign bank using such a program.

Sometimes banks offer customers additional use of e-mail services: for example, to send copies of contracts confirming the transaction.

What tariffs are provided for investment accounts abroad?

Investment operations are an investment in various financial instruments (stocks, bonds, derivatives, precious metals, etc.). At a meeting with a client regarding the opening of an investment account abroad, a representative of a financial institution will certainly offer to fill out a questionnaire, as well as ask a number of questions that will later help him give recommendations to the client regarding the profitability of various investment programs and thus determine the choice.

There are two main types of bank account management in a foreign bank, which are divided depending on the investment preferences of the client. In the first case, the client gives his money in trust to the bank. In this case, an Asset management mandate is signed, and in the future, the bank makes decisions on investing money itself. With this management, the client almost does not perform any operations on his own, and a management fee is charged in the amount of 1 to 5 percent of the amount of investment.

In the second case, the client reserves the right to perform investment operations. As for the tariffs for such operations, they are approximately the same in all foreign banks and depend on the amount of cash, the investment period, currency, the type of instrument in which the funds will be invested, and the credit rating of the issuer of securities.

The cost of servicing an investment account abroad ranges from 0.125 to 0.25 percent per year, and depends on the amount of funds placed: the larger the amount, the lower the commission. So, in a Swiss bank, when placing five million francs, the commission will amount to 0.25 percent of the amount, and if the amount deposited on the account exceeds twenty million Swiss francs, the commission may already be 0.15 percent. If funds are invested in precious metals or coins, the commission will be 0.20-0.25 percent, regardless of the amount of funds raised.

There are exceptions: for example, if the funds raised are invested in securities issued by the bank itself or the banking group to which it is a member, servicing an account with a foreign bank may be free.

The total commission for operations may be from 10 euros or 0.10 percent of the transaction amount and largely depends on the type of financial instrument and the “territorial” moment. If the transaction is made with traditional investment products (for example, stocks) in one country, the commission for one transaction may amount to 0.2 - 1.1 percent of the amount of the transaction (again, the larger the amount, the lower the commission). Otherwise, the commission can reach up to 2.2 percent, depending on the amount, type of financial instrument and country.

The value of the transaction fee may also be affected by the currency in which the account is open and its profitability. If the currency of the account abroad differs in the main currency of the bank, then the conversion will increase the commission. In addition, the “profitable” the currency, the higher the commission.

Banks that open settlement accounts often offer to open investment accounts with them. Accordingly, when choosing a bank to open an investment account abroad, you should not always focus only on tariff attractiveness; first of all, pay attention to the performance indicators of the strategy chosen by the bank and the tactics of managing your investment portfolio.

What plastic cards do foreign banks offer?

Today, the majority of banks offer their customers credit card issuance. In some banks, they can be obtained immediately after opening an account with a foreign bank. To do this, during an interview with a representative of a financial institution, fill out an appropriate application. Other banks have special requirements for cards, so you can only get them some time after opening an account abroad. So, for example, in some Swiss banks the issue of a card is possible only if the client constantly has a certain amount on deposit.

There are various requirements for plastic cards in terms of insurance coverage, the amount of cash, the issuance or cancellation rates. In addition, there are payment limits: for example, a client can pay with a card only if the purchase price does not exceed the amount agreed by the bank.

For a Russian banking user, the requirements (as to a non-resident) when issuing a card in a foreign bank can differ greatly from similar requirements accepted in Russia. This is due to the fact that the bank, when issuing the card, should provide for the cost of enforcing the judgment in the event of an overdraft on the account due to dishonest behavior of the client. It turns out that the client is forced to have significant insurance coverage that is blocked on the account.

As a rule, the size of insurance coverage is tied to the spending limit, which can be significant (usually 10-20 thousand euros). For example, in Austrian banks this ratio can be 1: 5.

But the situation is not so bad, because there are different types of cards. So, you can issue not Visa or Mastercard, but cards of associated companies: Visa Electron or Cirrus Maestro, on which you can spend all the funds on them. As a rule, such a card is tied to the current account, and funds are not blocked. But such a card has limitations in use: for example, a daily payment limit, and in addition, not all online stores accept payment with such a card.

Currently, in conditions of severe financial competition in Western banks, there is a steady tendency to move towards the wishes of Russian customers. Banks demonstrate a reduction in card service tariffs, facilitate the terms of their issuance, and also offer non-standard banking products, for example, card design according to an individual sketch.

What is a non-standard banking product?

In some cases, for certain transactions or the company to conduct its usual activities, the client, together with a valid current account, needs additional banking products: a merchant account, a brokerage account, an irrevocable deposit, a conditionally targeted deposit account, etc. Similar tools can be used both in the bank in which the company account is opened, and in another foreign bank. The client must first determine what kind of product he needs, and then find out if he exists in this form in principle, and whether a particular bank is able to provide it.

Separate credit organizations enable the client to use some non-standard products immediately when opening a bank account in a foreign bank.

Each bank that has non-standard products in its arsenal offers its own set of these tools, as well as sets individual tariffs for them. It should be borne in mind that the cost of providing such services is likely to exceed the cost of a similar product in a bank specializing in providing such an instrument.

Can I use a minimum balance?

There are various conditions under which it is possible to spend funds held in an account abroad as a minimum balance. Moreover, often the amount of the minimum balance is immediately included in the initial deposit.

As a rule, it is permissible to use part of the initial deposit, however there is a certain amount that is “frozen” in the account with a foreign bank. This practice is traditional for many settlement and savings banks. For example, in one of the Liechtenstein banks the initial deposit is equal to the sum of the minimum balance and amounts to 300,000 Swiss francs, and in another bank of the same country, the amount of the minimum balance is 100,000 Swiss francs, and the initial payment must be at least 10,000 Swiss francs.

Some banks do not allow spending funds from the minimum balance under the threat of blocking the account. However, there are also banks that allow the client to spend the minimum balance. But at the same time they introduce additional tariffs. So, one of the Baltic banks does not charge an account maintenance fee if the average monthly account balance is more than LVL 100,000, if this amount decreases, the bank charges a monthly service fee from the client.

In savings banks, as a rule, the minimum balance on the account is equal to the amount of the initial deposit. Depending on the policy of the bank, it is permissible to achieve the set amount within a certain period of time, for example, from one to six months, when this amount is reached, its reduction in the future becomes impossible.

It is possible to agree with some banks, for example, on a one-time reduction of the balance for a certain period of time (in case a large amount is urgently needed). This condition can be agreed in advance at the bank, while indicating that the profit received will settle in the account again after some time.

What requirements do foreign banks set for a minimum balance when opening an account abroad?

Banks that open accounts for commercial transactions, as a rule, allow zeroing of accounts. But there are those that require a certain amount on the accounts of companies (the size depends on the requirements of a particular bank). If the balance on the account abroad is less than a certain amount, the bank reserves the right to establish an additional fee for servicing the account. And in some cases, and notify the client about the possibility of closing the account.

With regard to specific amounts, Swiss banks today set the minimum balance in the range of 1,000,000 - 2,000,000 Swiss francs; Austrian banks - in the range of 500,000 - 1,000,000 euros.

Banks specializing in settlement and settlement and savings accounts, as a rule, do not establish requirements for the presence of an account balance. So, the requirement for a minimum balance is absent in the Baltic banks. On the contrary, Austrian or Liechtenstein banks that open settlement accounts require an irreducible balance.

What are the requirements of foreign banks for the initial deposit?

The initial deposit is the amount that is deposited in a foreign bank account in order to activate it. Most savings banks set the amount of the initial deposit equal to the amount of the minimum balance in the account. At the same time, some Swiss banks offer customers their own procedure for making the indicated amounts.

Settlement banks set significantly lower amounts of initial deposits than savings banks - as a rule, they do not exceed the amount of $ 5,000 or euros. At the same time, some banks allow further use of this amount (for example, a well-known Danish bank), while other banks do not provide such an opportunity.

Do foreign banks establish requirements for the turnover of funds in the account?

Establishing a number of requirements for a potential client is a common practice of foreign banks. When opening an account abroad, their employees voice individual oral requirements to clients that may not be spelled out anywhere in banking documents. This applies, for example, to an agreement on the amount of the initial deposit, the amount of average monthly balances or the permissible annual turnover.

As an example of a settlement bank, which establishes a requirement for a certain minimum annual turnover for customers, take a well-known Austrian bank. The desired annual turnover for his customers will be 30,000,000 euros. Moreover, if the annual turnover is less, the bank will charge an additional fee for servicing the account.

Which bank is better to choose to open an account for an offshore company?

From the very beginning, it should be borne in mind that there is no ideal bank account abroad, just as there is no ideal bank or ideal client. That is why we should rather talk about finding a bank in which you need to open an account that is optimally suited for the activities of the client.

If we are talking about opening an account in a foreign bank for the company to conduct commercial operations, it is assumed that the client will perform frequent operations on the account abroad. Therefore, first of all, in this case, you need to choose the bank where there are no requirements to limit the number of payments (incoming and outgoing).

Also, when choosing a bank, you should pay attention to where is the procedure for opening an account? Are there any requirements related to making an initial deposit and the presence of an irreducible balance in the account? Does this bank work with various currencies, including, for example, rubles? How much do the proposed tariffs and account management methods suit you? Are there any Russian-speaking employees? Are any recommendations necessary? And also how complicated the procedure for opening an account looks like.

What are numbered accounts in foreign banks?

Some banks allow you to open number accounts: the details of such an account do not indicate the name of the company (for corporate accounts) or the name of the owner (for personal accounts). Only a set of numbers is indicated on a bank card. However, this does not mean that the client is not known to the bank, because in any (!) Case, when opening an account with a foreign bank, the client must provide the beneficiary’s name and provide a copy of his passport.

Number accounts first appeared in Switzerland. And although such an account abroad is associated with the name of a specific person (beneficiary), his identity remains an absolute secret for everyone, accessible only to individual employees of the bank that opened the account. Numbered accounts with foreign banks have another advantage: that they ensure complete confidentiality of bank transfers. When debiting money from a numbered account, the receiving bank sees only the account number, but it should be borne in mind that some European banks refuse to work with numbered accounts. And in this case, the amount sent from the number account can be returned to the sending bank.

The same rules apply to a numbered account abroad as to other bank accounts. And in certain cases, information constituting a bank secret may be disclosed (for example, as part of the fight against money laundering). We believe that currently the use of number accounts is not advisable, in addition, there are very few banks offering such services.

A numbered account abroad should not be confused with an anonymous account. Misconception about the existence of anonymous accounts for some reason still exists. Apparently, the fact is that at one time some banks opened accounts for customers on the Internet only on the basis of a provided copy of the passport. And it often turned out that a copy of one person’s passport was sent to the bank, and the account on his behalf was controlled by a completely different one (actually an anonymous person).

Of course, now the situation has changed radically, and all banks have stopped the practice of such an absentee account opening abroad. Today, bank employees, as well as professional intermediaries involved in the procedure of opening an account abroad, certify the authenticity of copies of the provided passports in the presence of their owners.

What is the difference between a savings (investment account) and a bank account abroad?

A bank account in a foreign bank is intended for transit operations. The owner of such an account manages his funds without restrictions, makes any payments not prohibited by law and complies with the requirement to provide copies of supporting documents (contracts) to the bank if the one-time payment exceeds a certain amount agreed in advance with the bank or is not typical for this client.

In turn, a savings account in a foreign bank is designed to accumulate funds, this is, in fact, a “piggy bank account”. Transactions on such an account are minimal: from three to twenty per month, depending on the conditions established by a particular bank.

Therefore, it is quite obvious that opening a current account will be advisable for a company acting as a settlement instrument, and a savings account will be convenient for an investment accumulation company.

What do banks specialize in?

Each bank has its own specialization. Some are focused on the preservation and increase of capital, others - on the commission of a large number of transactional operations. According to these criteria, all banks can be divided into two categories: savings and settlement.

About 70% of the banking services market is held by savings banks. These include banks in Austria, Liechtenstein, Luxembourg and Switzerland. As a rule, they set a high minimum balance on the account and limit the number of settlement transactions. Banks providing settlement services, as a rule, do not make claims on account balances and are mainly located in the Scandinavian countries, Hong Kong, Singapore and the USA.

There are also banks that do not limit their activities to any one area: they are involved in both settlement and investment management. These include, for example, the Baltic banks.

How reliable are foreign banks opening an account abroad?

The reliability of the bank refers to its ability to fulfill its obligations to customers on a specific date. For this characteristic, several criteria can be distinguished. First of all, you should pay attention to the year the bank was founded. For a bank with a history of three hundred years, insolvency is unlikely.

In practice, cases of bankruptcy of reputable banks lead to the fact that such a collapse serves as a new impetus to their development. And as an example, we can cite the sensational case of the English bank Barings in 1996, which went bankrupt as a result of speculative operations of one of its Singaporean managers who played on the Japanese yen. As a result, Barings suffered a loss of $ 1,400,000,000, this amount more than doubled the bank's equity. And such losses, of course, led the bank to bankruptcy proceedings. But soon Barings was bought by a major Dutch banking group ING.

At one time, among the clients of Barings were Queen Elizabeth II and Prince Charles. And this may indicate another important criterion - the customer base. A serious financial institution, even with numerous debts, will not be allowed to “die”: most likely, it will be acquired by another large bank. As a rule, a change of shareholders does not affect the interests of customers, unless the policy of the bank as a whole changes. For example, when the opening of accounts to a certain circle of clients (Russian audience) can be stopped. Similar precedents have been encountered in the practice of some foreign banks.

The location of the bank may also indicate a certain reliability. By this criterion, for example, the reliability of European banks can be designated as one hundred percent. Another important point is the amount of compensation paid by the bank under the state deposit insurance system in the event of bankruptcy. In some countries, this amount is fixed in law, in others there is no clear limit, and the amount of compensation is determined depending on the amount of money held in an account abroad.

What determines the reputation of a foreign bank?

Reputation is an actual characteristic for any foreign bank: people, as a rule, are interested in opening accounts in reliable banks with a high credit rating. Even foreign partners of a company often state that in order to carry out specific operations, a company account must be opened in a foreign bank with a high rating category.

The reputation of the bank consists of several components. First of all, this is the story: how long has this bank existed? Thus, the Baltic banks were founded only at the end of the last century, and most Swiss banks have a rather long history (often more than 200 years). The reputation of the bank is also partly determined by the number of employees working in it. For example, about 70 thousand employees work in the largest bank in Switzerland and in its branches all over the world, and in one of the American banks located in Seattle, only twenty-four people work, though they speak eighteen (!) languages.

Affects the reputation of the bank and the number of its branches. However, it should be remembered that a large number of branches of a bank is not always a guarantee of the convenience of working with it. For example, one of the largest English banks has several thousand branches around the world and operates under the slogan "Your local bank." In reality, practice shows that he opens accounts for customers from Russia with great difficulty, and not in every of the foreign branches.

Which foreign banks open accounts for offshore companies and individuals?

Recently, the Russian banking services market (opening accounts in foreign banks) has been abundant. More or less actively, about one hundred and twenty banks in Europe, Asia and America work with clients from our country.

The most important characteristic of a foreign bank, which is one of the criteria for its reputation, is its geographical location. As a rule, it is the location of the bank that primarily interests customers who are interested in opening an account abroad. However, one should not limit the choice of a particular bank to the mere reputation of the country or the fact of finding business partners in this state. This can lead to a wrong decision, because as a result you have to work with a bank that does not meet the necessary requirements. For example, one may encounter a rather high cost of banking services, a “prejudice” against the jurisdiction in which the company is registered, and a mentality of bank employees that differs from our Russian approach to working with banks.

Of course, the geographic location of the bank should be taken into account, however, the primary criterion should still be the correct functioning of the account and the specialization of the bank that is right for you.

Procedure for opening an account abroad

When can a bank account in a foreign bank be closed?

If the bank suspects that the essence of the payments does not correspond to the originally declared nature of the company’s activities, the account may be blocked for the subsequent clarification of all circumstances.

In addition, the bank is unlikely to agree that the column “Purpose of payment” will always feature the same phrase: “Replenishment of funds in the account”. In this case, you must be prepared for the fact that the bank asks to provide him with documentary justification for any payment.

It should be borne in mind that some banks are quite unpredictable in their actions in those cases when it comes to the termination of customer account service for one reason or another. This primarily concerns American banks, which have the practice of notifying the client with the requirement to close the account within a week without any explanation of the reasons for this decision.

Under what circumstances can an account be denied opening abroad?

A client may be denied opening an account abroad due to the fact that he declares such activities of the company that the bank does not like. It is also not recommended to indicate that the company has more than one type of activity. If you still have to specify several species, then they should all be “interdependent” (for example, grain trade and import of agricultural machinery).

There are times when a company has to declare several types of activities that are not dependent on each other (for example, investment operations and coal trading), in this case it must be clearly stated when opening an account with a foreign bank, or ... acquire several companies and open a separate account for each .

In addition, one should not indicate such a type of activity as “financial intermediation”: it is unlikely that in this case there will be any bank at all that will open an account.

In which countries and how many accounts can I open for an offshore company?

There are practically no restrictions on the number of accounts, just as there are no restrictions on jurisdictions in which it is possible to open accounts for offshore companies. Unless it is, for example, about registering an insurance company and making insurance coverage at a specific authorized bank. But it will be, rather, an exceptional case.

Many jurisdictions do not establish a mandatory requirement to open bank accounts at the place of domicile, that is, the “registration” of a particular company: there is no obligation to have an account with a foreign bank in the same jurisdiction in which the company is registered. This applies to all offshore jurisdictions, as well as the UK, New Zealand, Cyprus, etc. But, at the same time, such a procedure is mandatory in Switzerland, the Netherlands or Austria.

If a company has several accounts in various banks, and it is required to pay tax at the place of registration, the company has an obligation to provide bank statements from all of its accounts when submitting reports.

What documents are required to open an account with a foreign bank?

First of all, opening an account abroad requires an apostilled set of corporate documents of the company itself, moreover, with a fresh date on the Apostille. If the company is not new, then additional documents will be required: Certificate of good standing (Certificate of good standing), which is an analogue of the Russian extract from the Unified State Register of Legal Entities, and a certificate that contains information about the directors and shareholders of the company (Certificate of incumbency). It is also necessary to provide resolutions on the appointment of directors, on the issue of shares, the share certificates themselves and the trust declaration.

The client must present a general passport of the Russian Federation and a foreign passport. As the passport expires, the bank may ask for a copy of the new passport. In addition, copies of the passports of the director, attorney, shareholder and beneficiary of the company, as well as proof of their address (proof of address), are provided to the bank. For citizens of the Russian Federation in this case, as a rule, it is enough to provide a copy of the page from the passport with a mark on registration at a specific address. The foreign client does not indicate the place of residence in the passport, and the bank in this case asks for, for example, copies of telephone bills or bank statements that came to his name at his address.

In some cases, foreign banks are asked to provide them with letters of recommendation from any other bank or recommendations from a business partner. Moreover, the recommendations should be given by a solid “recognizable” foreign partner on behalf of a company that really exists (by no means from the same offshore!), With its own business, with the opportunity to find a company in relevant directories, on the Internet, etc. The recommendation should be on the form and contain the details of the organization issuing it. The signature of the person issuing the recommendation must be decrypted.

Each bank establishes its requirements related to the certification of copies of the documents submitted. In most banks, simple copies of documents are certified by an employee of the bank, but in some cases, banks require copies certified by a notary or, for example, request that original documents be submitted for consideration and examination for a specified period.

How is the interview with the banker going?

Is it necessary to visit a foreign bank when opening an account abroad?

In most cases, to open an account with a foreign bank, there is no need to go to Switzerland, Liechtenstein or, for example, Latvia. A personal meeting with a bank representative in Moscow is quite enough. However, in the case of Singapore, Hungary and some other countries, you will have to visit the bank.

There is another practice: in some banks, the employees of the head offices themselves express a desire to meet with a client to open an account in Russia or in any other European country.

Can I open an account with a foreign bank without a personal presence?

The procedure for opening an account and the requirements for customers in different foreign banks may vary significantly, however, there are some general rules. So, for example, a client is obliged to personally come to a meeting with a representative of the bank or to the office of a law firm (in the event that the bank has an agreement with this company to provide such services), having on hand a full package of the required documents of his company. As a rule, the personal presence of at least the future account manager, as well as the maximum of the true owner of the company, is required. A lawyer representing the interests of the client (the so-called “introducer”) is usually present at the meeting.

In the event that the name of the account manager and the name of the beneficiary do not match, bankers must require a personal meeting with the beneficiary. Moreover, each of them (both the account manager and the beneficiary) must provide detailed information about themselves and their business. The banks are well aware that the account is being opened for a new company, but, in addition, they are also well aware that every new company always has some real long-term business.

What is the procedure for opening a corporate account?

Today, the procedure for opening an account with foreign banks that traditionally serve offshore companies has become much more complicated. This is primarily due to the fight against terrorism, money laundering, corruption, illegal business, which has developed around the world in recent years.

In addition, the tightening of requirements for customers is caused by the reform of the banking systems of European countries that have recently joined the European Union and are called upon to follow its banking directives. Clients now need to provide the bank with more detailed information about all persons involved in the corporate structure, about the company's activities and the goals associated with opening an account.

Who has the right to manage company accounts?

Only a person with authority can open company accounts in foreign banks, dispose of them and close them. Firstly, this is the director of the company, and secondly, the company’s attorney is a person who has a power of attorney with the right to open and close accounts therein.

The bank stores all information about such a person: copies of his passports, signed banking forms. In the event of a change in the account manager, the client must inform the bank about this and carry out the procedure for changing the manager in accordance with the procedure provided for in this bank.

What currencies can I open in a foreign bank?

Banks are allowed to open accounts in various currencies: mainly in dollars and euros. But it is possible to open accounts in pounds sterling, and in Swiss francs, and somewhere in rubles.

Technically, it looks like this: one multicurrency account or several accounts are opened, with its own separate number for each currency. Of course, you can always send a payment order to the bank to transfer funds in a currency that differs from the currency of the account itself. In this case, the payment will be made at the internal conversion rate existing at the bank on the day of payment.

Which is better: open an account in your name or company?

Banks do not open personal accounts for conducting commercial activities by the client: business interests and personal financial interests should be clearly delineated. At the same time, there is always the opportunity to transfer the profit distributed by the company to a personal account, provided that the owner of such an account is the true owner of this business.

Technically, there are no difficulties in transferring funds in the current account of a legal entity to the personal account of an individual. They can arise, for example, from the sending bank or the receiving bank in case of any suspicion. In this case, questions may be asked related to the source of funds. For credit and financial institutions, by virtue of their obligations to counteract the legalization of proceeds of crime, the law establishes an obligation in such cases to ask such questions. Movements on the account of an individual should not have signs of regular entrepreneurial activity; banks monitor such transactions closely enough.

As a rule, personal accounts are opened at banks in Switzerland, Austria, and Luxembourg. And these are usually accounts of an accumulative (investment) plan. The “pass” to the bank in such situations may be the presence of an irreplaceable balance in the account, for example, from five hundred thousand to half a million dollars (depending on the requirements of a particular bank). It is assumed that over time this amount will increase.

In some cases, a corporate account abroad may serve as a personal account. For example, you need to purchase real estate and arrange it not for yourself, but for a controlled foreign company.

Citizens-residents of the Russian Federation are obliged to notify the tax authorities at the place of their registration of the opening of a personal account or deposit with a foreign bank within a month after such opening. For violation of this requirement established liability in the form of an administrative fine. With regard to foreign, including offshore companies, the need to notify tax authorities about opening an account with a foreign bank is not provided.

Confidentiality issues when working with foreign banks

When can a foreign bank disclose customer information?

The ability of third parties to access customer information provided to the bank when opening an account with a foreign bank is regulated both by international legal acts and national laws on banks and the banking system. The algorithm for providing information about the client and the composition of its assets in relation to banks of foreign countries is as follows: access to relevant information is possible only on the basis of a decision of a local court (sanction of the prosecutor).

The local court decides to provide information if the Prosecutor General’s Office of the Russian Federation has sent an international investigative commission as part of a criminal case instituted in Russia. At the same time, a local court can make a decision on providing information only if a criminal case has been opened under an article that is considered criminal in the country where the bank is located. For example, in Switzerland tax evasion is not considered a criminal offense, respectively, if a criminal case has been opened in Russia under this article, then information on this request will not be provided.

What are the criteria for identifying suspicious transactions?

Each bank individually determines the criteria for suspiciousness, but at the same time they mainly depend on the numbers (volume of operations, their size, frequency, multiplicity, etc.). Therefore, when opening an account abroad, it is necessary to speak out in detail with the bank representative the relevant criteria, and in case of any changes in the nature of the movement of financial flows, it is imperative to inform the bank about this. This will be the most favorable way to build relationships, which, of course, will be appreciated by bankers.

If banks suspect or have reasonable grounds to suspect that the funds in the account are proceeds of crime or are related to the financing of terrorism, they must immediately report their suspicions to the appropriate financial intelligence units.

At present, international law seeks to unify the laws governing the disclosure of bank secrets.

The Money Laundering Financial Action Task Force (FATF), an intergovernmental organization involved in the fight against money laundering and terrorist financing, developed a document known as the “FATF Forty Recommendations” back in 1990, to which were subsequently added nine more recommendations. The provisions of this document were implanted in the banking legislation of most economically developed countries and currently serve as a guideline for the development of the global banking sector.

What does “bank secrecy” mean?

Bank secrecy is information that becomes known to a credit institution as a result of its professional activities. It includes information on the bank deposit, operations on the account, as well as information on the manager and the true owner of the account.

In Russian legislation, the legal regime of bank secrecy is established by Article 857 of the Civil Code and federal laws “On Banks and Banking Activities” and “On the Central Bank of the Russian Federation (Bank of Russia)”. The Law “On Banks and Banking Activities” prescribes bank secrecy as information about transactions, accounts and deposits of customers and correspondents, as well as other information established by a credit institution that do not contradict the law.

The circle of persons associated with bank secrecy can be conditionally divided into two groups: first, the owners of bank secrets (clients whose commercial interests are protected by the institution of bank secrecy, as well as credit organizations themselves, which receive this kind of information to fulfill their obligations ) Secondly, these are users of bank secrecy (persons who have access to bank secrecy due to the specifics of their professional activities: tax, customs, prosecution authorities, etc.).

The concept of "banking secrecy" is currently under the influence of the fight against terrorism, the legalization (laundering) of money has lost the meaning in which it previously existed. All developed countries have already prescribed in their legislation the possibility and detailed procedure for access to banking information for fiscal, tax and law enforcement agencies. In addition, an exhaustive list of persons who have the right to request information that constitutes banking secrecy from the credit institution, as well as methods for obtaining such information, has been established.

Today we live in a global information space, and, often, information is a key product of great interest. And in this sense, bank secrecy, as well as guarantees of its observance, is fanned by all kinds of rumors. When it comes to the fact that the bank is "leaking" information, it should be understood that this, of course, is an echo of precisely illegal actions.

Since the bank is, first of all, a commercial organization whose main goal is to make a profit, it cannot undermine its reputation by distributing information left and right, thereby scaring off customers. And each bank in every possible way will prevent the issuance of information. That is why the law establishes a completely clear legal procedure, as a result of which information can become available only to a certain circle of people.

Nevertheless, the conclusion, which suggests itself: in connection with the fight against terrorism and money laundering, access to information for tax, law enforcement and other bodies has expanded significantly. In this regard, it seems reasonable to agree with the existing situation, accept it and learn how to work in the circumstances.

What is Due Diligence (DD)?

The national legislation of any country prescribes the obligation of banks when opening an account abroad to take measures for due diligence of customers (DD), including identification. Among these measures are customer identification and verification of identity using reliable, independent primary documents, data or information.

This primarily concerns the determination of the true owner of the company (beneficial owner): who owns the ownership right? Who and how exercises control over the company? Next, we are talking about obtaining information that reveals the main activities of the company and the estimated nature of its business relationship.

Quite often, banks collect additional data about the client: for example, marital status and the presence of children. Such information is essential when planning long-term relationships with the bank: there, the bank itself tries to determine in advance who will become the heir to the funds stored in the account. Sometimes this information is used as an additional code key for customer identification.

In the future, the bank on an ongoing basis carefully analyzes the transactions made by the client, makes sure that the transactions concluded correspond to the nature of the activity declared by the client, as well as its business activity, nature of risks, etc.

In addition, local legislation prescribes the filling out of a beneficiary declaration, without which it is virtually impossible today to open an account with any foreign bank (for example, in Switzerland it is “Form A” - Identification of Beneficial Owner).

Foreign banks have different approaches to performing Due Diligence. So, for example, there are banks that offer the client to provide information about their activities in free form (a prospectus of the company will be enough). At the same time, some Swiss banks check the client through independent bodies - detective agencies (which they inform the client about in advance). One thing is absolutely certain - foreign banks prefer to work exclusively with “transparent” customers.

Both an organization and an individual can open a bank account abroad. But to do this is not easy. Those wishing to become customers of foreign banks outside of Russia should be prepared for various restrictions, as well as regular reports on the balance and movement of foreign money. Failure to comply with currency laws 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. It is best to contact the representative of the financial institution by e-mail to clarify the requirements, procedure and list of required documents. Typically, the list of required securities includes:

russian passport;

international passport;

information about the applicant’s activities and his income;

information about members of his family;

certificate that he has no criminal record;

When the papers are collected, a citizen who wishes to have an account with 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 cash costs, and then they will increase rapidly.

Many large foreign banks require the personal arrival of a potential client to the organization’s foreign office, where he transfers a package of documents and fills out a questionnaire. That is, if an individual permanently resides in Russia, the cost of a round-trip flight, and possibly a temporary stay in a foreign country, in this case is almost inevitable. If there is no visa, money will be needed for its registration. Is it possible to open an account abroad remotely without traveling to another country, should be specified 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. Typically, the waiting period is from 2-3 days to a month. And if the answer is yes, an individual opens a bank account abroad, which 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 Currency Regulation and Control” (Law No. 173-FZ of 12/10/2003). In it, in particular, it is said about the need to notify the tax authorities about the opening of a cash account abroad in 30 days. The notification form is contained in the order of the Federal Tax Service No. MMV-7-14 / [email protected]  from 08/28/2018. In addition, every year (until June 1), a foreign currency resident needs to inform the tax service about how he managed “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 do companies open an account with a foreign bank

Organizations are very interested in opening an account outside the Russian Federation. An unstable financial market leads to the closure of both small and very large Russian banks. Because of this, the companies that entrusted them with the money suffer heavy losses, without any compensation from the state.

In the selected financial institution, the company presents an impressive package of documents. In particular, foreign banks, in order to open an account, request:

foreign passports of persons who will be authorized to dispose of funds stored in the account (Russian passports may be required);

power of attorney, if the account is opened through a representative;

constituent documents of the company: memorandum of association, charter, etc .;

evidence - PSRN, TIN;

an order to appoint a leader and chief accountant;

a document proving that the bankruptcy procedure is not being conducted with respect to the organization;

a license (if it is necessary for certain activities);

completed application form.

The specified list of documentation can be significantly expanded by a banking institution. Before opening an account with a foreign bank, a legal entity (as, indeed, a citizen) needs to document the legal origin of the money, as well as the reason why it needs to become a client outside of Russia.

The company is also obliged to notify the tax service about opening an account abroad within 30 days after this event and quarterly report on the movement of money (Decree of the Government of the Russian Federation of December 28, 2005 No. 819).

Opening an account with a foreign bank: what to consider

When opening a bank account abroad, several factors should be taken into account:

Banks opening accounts with foreign banks to foreigners do this not for free. The "input" cost for new customers has a wide range: in some banks it is 300 euros, in others it reaches 3,000 dollars. In addition, annually you will need to pay for servicing a foreign account. The cost of this service also varies - from several hundred to several thousand euros / dollars.

If an individual has opened a money account in another state, a foreign bank will allow it to be used only for personal, not business purposes.

Through accounts located outside the Russian Federation, it is possible to conduct 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 to a non-resident of real estate located in another state, are allowed only if the account is opened in a bank in the territory of a member country of such intergovernmental organizations as the OECD or the FATF.

For illegal operations, 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 Administrative Code 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

Reporting is quite simple, says Zakharov: a two-sheet form, on the first - the applicant's data, on the second - information on accounts in a foreign bank. If there are more than one account, then the Federal Tax Service must file the first sheet and several copies of the second sheets, equal to the number of accounts, he says.

After the tax office receives your report, it may have additional questions. The Federal Tax Service press service confirms this: for the purpose of exercising currency control, it 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 in a bank account, says Yulia Mikhalchuk, lawyer for the CorpLaw.Pro legal service. “It is better to get these documents in advance at the bank,” Zakharov advises. According to him, most likely, extracts on cash flow and letters on opening and having accounts with such banks may be needed.

Mikhalchuk from CorpLaw.Pro also notes that it is not necessary to go to the country where the bank is located - you can receive extracts 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 circumvent 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 experience 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, rent from renting foreign real estate, and the sale of securities through a management company. Also, since the beginning of 2016, income tax has been charged on interest on deposits with a foreign bank, recalls Zakharov from Paragon Advice Group.

The 2015 declaration company ended on April 30th. Mikhalchuk says that it was necessary to report on income received, including to foreign accounts, in the form of 3-personal income tax. Non-payment or incomplete payment of taxes under article 122 of the Tax Code means a fine of 20 to 40% of their amount.

If the income tax, for example, received from the rental of real estate, is paid in the same country where a foreign account is opened and exceeds 13%, then Russia does not have to pay anything, notes Klenov from UFG Wealth Management.

But so that the Federal Tax Service does not have questions, it is better to provide her with a tax return from another country and payment documents if you manage your property yourself. If the trustee deals with this, then you need to get a certificate from him: he is the tax agent in this case, Klenov says.

According to Zakharov, tax claims for previous years can be avoided with the help of capital amnesty - before July 1, 2016, a special declaration can be filed. “It is necessary to indicate the balance of the account abroad and attach a notice on opening an account. This makes it impossible to attract you for tax evasion, ”he says.

Problems with the currency legislation

Most Russian citizens are not only tax, but also currency residents. This concept appeared in 2012. According to the law on currency regulation, these are all citizens who have a Russian passport, except for those who “have been living for at least a year” abroad for a residence permit, work and study visas.

PwC partner Maxim Kandyba says that the phrase “at least a year” means: it’s worth to appear in Russia for a day, and you are a currency 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 a citizen is eventually discharged from his home in Russia, and it is difficult to track his short-term visits to his homeland for tax purposes, he says. Under Russian law on the right to freedom of movement, a citizen is required to register at the place of stay within 90 days.

Currency residents have great restrictions on the use of foreign accounts. They are allowed to transfer funds from other banks (including Russian), credit interest on a deposit, deposit cash and make profit from converting funds.

All these norms are listed in the 12th article of the law on currency regulation. In addition, you can credit salaries, travel expenses, social payments - pensions, scholarships, benefits to these accounts. But you can’t receive grants for them, the Finance Ministry specified at the end of 2015. This is a violation of currency laws.

In countries that are members of the OECD and the FATF, you can additionally credit loans and credits in foreign currency, income from rental housing, coupon income from securities, and income from trust management of your funds (if they are managed by a non-resident of Russia) . For example, Bulgaria, Montenegro and Cyprus, popular among Russians, are not included in the FATF or the OECD.

All operations not included in this list are prohibited, otherwise you will face a fine, says Dmitry Klenov, partner at UFG Wealth Management. Partner at Paragon Advice Group Alexander Zakharov said that the fine could be from 75 to 100% of the amount of the prohibited operation. The same is said in article 12.25 of the Code of Administrative Offenses.

In fact, it looks like this: if your foreign account received a profit of $ 100 from the sale of securities (this operation is not allowed by currency legislation), the fine can be from $ 75 to $ 100. It can be avoided by taking advantage of the amnesty of capital, admits Maples. It applies to all illegal operations on foreign accounts on the date of filing a special declaration, Zakharov said. The declaration can be submitted before July 1, 2016.

Account hiding

The report to the Federal Tax Service on foreign accounts means a huge number of problems - from extracting statements from foreign banks to the possibility of tax and currency claims. “Everything is 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 on condition of anonymity.

What awaits them in this case? According to the currency legislation, if you did not report the account at all and the Federal Tax Service will eventually become aware of it, you will have to pay a fine of 4 thousand to 5 thousand rubles. The penalty for late informing is from 1 thousand to 1.5 thousand rubles. The punishment for not having time to provide documents on the movement of funds in 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. Repeated violation will cost 20 thousand rubles.

Violation of tax laws is more expensive. If you did not inform the tax service about your account abroad at the same time and at the same time received income on it for many years, this is already tax evasion, argues Klenov. In this case, the Federal Tax Service may require additional taxes and a fine: from 100 thousand to 300 thousand rubles. depending on the unpaid amount.

International Financial Advisor FCP (Financial Management) Ltd. Isaac Becker is sure that eventually the accounts will be known. “Even if you remain silent today, the information will sooner or later appear in the tax service, subsequently 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 begin in 2018, and the first reports are likely to go exactly on the basis 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 will the mechanism begin to work.

Klenov says that so far 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 timely report them to the tax inspectorate, using the amnesty.

What awaits the investor, student, expat and trader when using foreign accounts

Rent from renting foreign housing

It all depends on where the foreign account is opened, to which income from rented housing comes. If in the OECD and FATF countries, then you are acting within the law, says Maxim Kandyba. If in other countries, the forecast is disappointing: you violate currency laws. In this case, income from leasing property in any case is subject to personal income tax at a rate of 13%.

Account report

Tax law:
— 13%   tax if the account is opened in the “authorized” OECD and FATF countries
from 20 to 40%  from the sum

Currency legislation:
  - fine from 75 to 100%
from 300 rub. up to 3 thousand rubles.; for repeated violation - 20 thousand rubles

Account hiding

Tax law:
  - requirement to pay taxes at a 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 the “authorized” 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 won’t be able to notify about opening an account abroad: a Russian bank will immediately require a notice with a tax service mark about opening an account with a foreign bank. Otherwise, the translation will simply not be released from Russia, says Alexander Zakharov.

Account report

Tax law:
  - tax 13%   from interest on account balance
  - possible penalty for tax evasion from 20 to 40%  from its amount

Currency legislation:
  - a possible penalty for being late with a report on the movement of funds on the account from 300 to 3 thousand rubles.; for repeated violation - 20 thousand rubles.

Account hiding
  - Impossible

Scholarship of a foreign university

If a person studies abroad, he is not a tax resident of Russia at all, Zakharov believes. However, if training, as it 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 currency resident if study lasts less than a year or from time to time he comes to Russia. The fact of receiving a scholarship does not violate the 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 report

Currency legislation:
  - Possible late fee with a report on the movement of funds on the account from 300 to 3 thousand rubles.; for repeated violation - 20 thousand rubles

Account hiding

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 being in 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 you can’t talk about currency residency. Short visits to Russia do not oblige you to anything: the requirement to register at the place of stay occurs only when traveling for more 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 report
  - Not needed

Account hiding
  - no consequences

Securities Trading

This is the most difficult case: the number of permitted transactions with securities in the currency legislation is limited. In fact, only coupon and interest income on securities, as well as payments on bonds, can be received on a foreign account. But at the same time only in the OECD and FATF countries. Since the beginning of 2016, accounts abroad have also been allowed to credit trust income (if the manager is not a resident of Russia), Maxim Kandyba explains.

All these incomes are subject to personal income tax at a rate of 13%. At the same time, 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 and pay the tax, reminds Filinov from PwC. According to Zakharov Advice Group, from January 1, 2018, permission will enter into force to credit income from the sale of securities themselves to foreign accounts. But for now, this is a serious violation: a fine for him is 75-100% of the amount of income. At the same time, the redemption of bonds is not a sale of securities, and therefore, is permitted by currency legislation, Zakharov claims.

Account report

Tax law:
  - tax 13%   from income (if the account is open in "permitted" countries)
  - possible penalty for tax evasion from 20 to 40%  from the sum

Currency legislation:
  - a possible penalty for being late with a report on the movement of funds on the account from 300 rub. up to 3 thousand rubles; for repeated violation - 20 thousand rubles
  - fine from 75 to 100%

Account hiding

Tax law:

- requirement to pay taxes at a 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 “unauthorized assets” in “unauthorized” countries were credited to the account)

Many citizens of our country believe that it is better to keep money in foreign banks. The Russian economy is constantly in crisis, sanctions are being introduced and lifted, oil is falling, the dollar and the euro are growing. All these factors do not contribute to increasing confidence in domestic banks, because people do not leave the feeling that at any moment everything can collapse. It should be understood that opening an account abroad is accompanied by certain difficulties. Is this even possible? In the article we will tell you how to open an account with a foreign bank, what difficulties may arise, and also help you choose the most reliable country for your account.

Which Russians can open an account abroad?

In Russia, Federal Law No. 79 of May 7, 2013 was adopted, restricting the circle of persons entitled to open accounts in foreign banks. So, this is prohibited for those who occupy senior positions in government agencies, such as:

• prosecutor general's office;
• federal executive bodies;
• board of Directors of the Central Bank of the Russian Federation and others.

Until recently, to register an account in a foreign country, it was necessary to obtain permission from the Central Bank of the Russian Federation, but now the procedure has been simplified. It is enough to notify the tax service up to 30 days after signing the contract with the bank. After that, every 5 years you need to submit a report on the movement of funds to the tax service.

Also in 2016, Russia became a party to an international agreement on the exchange of data on financial transactions. Starting in 2018, our country will be included in a single information field with other states, which will allow tax authorities to directly receive information about the movements of Russian funds. Therefore, you need to be prepared that it will become more difficult to hide your income.

The main question: how to choose a country to open an account

In order to open an account in another country, as a rule, you need to be its resident. Some banks do not have this requirement for customers. But then, perhaps, you will encounter other conditions of service.

Often, financial institutions require you to provide documentary evidence of your desire and ability to open an account in another country. The bank may require the provision of:

• residence;
• documents on property ownership;
• visa (if required to enter the country);
• a 2-NDFL certificate certified by a notary, a certificate of inheritance and other documents confirming the receipt of finances.

Each bank has its own rules for receiving applications for opening an account for citizens of other countries. Therefore, it is necessary to clarify the list of requirements on an individual basis. But it is worth noting the general trends:

1. In the eurozone countries, as a rule, documents will be requested according to the list above (in Sweden, the UK, Spain and others). The exception is the Latvian bank Rietumu Banka, which even helps foreigners in obtaining a residence permit and is ready to open an account with a small investment.
2. Also, large world banks set a threshold for a minimum amount for storage. Most often, it is 50,000 or even 100,000 in the state currency, and, for example, for Credit Suisse, Barclays or UBS without a residence permit they will accept 1,000,000 or more.
3. At the same time, many Asian countries are interested in investing and provide comfortable conditions for opening accounts. For example, the Chinese ICBC and Bank of China are ready to approve the application when they enter the account from 1,000 yuan. But Singapore is not an example of a demanding attitude to the opening of accounts by citizens of other countries, and the authorities will require a full package of documents.

Of course, only the most important points regarding cooperation with foreign banks are listed here.

How to open a bank account abroad?

The main restriction for individuals when opening an account in another country is that the account can be used only for personal purposes. It is forbidden to carry out any operations related to entrepreneurial activity. You can use an open account in only three areas:

• storage of funds;
• payment of purchases, services and other personal expenses;
• investment activities.

As for the registration of the application, in different countries it will take from a week to several months. Documents are carefully checked, and the bank security service must make sure of your reliability and honesty. And only if the bank makes sure that there are no reasons for refusal, will you open an account.

As a rule, much attention will be paid to the legality of the origin of the investment. In addition, in the case of a positive decision and approval of the application with the further use of money from the account (especially when working with large amounts), you may also be required to justify the expenses. For example, request documents for the purchase of real estate or checks from a medical institution.

Most often, you will need to personally fill out an application for opening an account, so consider the possibility of a visit to the country that provides you with banking services. Additionally, it is worth checking with the manager of the selected bank some important details:

• guarantees of saving money on the account for foreigners (especially for those who are not residents of the bank's country);
• the size of the minimum balance of the account (also there is no one universal value for all institutions);
• how much and what deposit insurance gives.

Account Opening Methods

There are several options to open your own account abroad. This can be done in the following ways:

1. Personally fill out all documents in the language of the country that accepts the application. Next, most likely you will need to come to the bank and fill out a questionnaire on the spot.
2. Having concluded an agreement with an intermediary company, which will prepare and send all the necessary papers for a fee. This service can cost up to several thousand dollars.
3. By issuing a power of attorney for a third party (for example, a colleague or a lawyer permanently in the country of the bank).

Large banks are not always ready to work with a future client blindly, through third-party organizations or proxies.

It is necessary to clarify the rules of work of a particular organization, in which either a mandatory personal visit to the office, a conversation with an employee of the company by phone, or a visit to a representative office in our country (usually in Moscow), such as, for example, at Deutsche Bank, Credit Suisse, can be prescribed.

UK and US Banks

The most serious requirements for customers are presented in English and American banks. It is especially difficult to open an account for non-residents, but for those who already have rights in the state, confirmed by a residence permit, strict rules are established. You may be required to provide:

• letters of recommendation from colleagues or business partners;
• rental agreement on letterhead of a British real estate agency;
• bills paid for housing rent and utility bills (the address and name must be indicated) and other documentation.

Therefore, if you are not a resident of these states, then think carefully about the profitability of opening an account. You will encounter a number of difficulties and far from the fact that you can break through all the bureaucratic barriers.

Account Management and Service Shutdown

In the modern world, a well-developed online banking system, so managing your account will not cause problems.

Replenishment of the account in addition to the traditional cash deposit through the cash desk is also possible online. But there are some nuances:

• you can transfer money from a Russian account to a foreign one only after notification by the Federal Tax Service;
• when depositing funds in a bank, it is necessary to explain the origin of the money and confirm its legitimacy.

Before opening an account in the institution of your choice, specify how it can be closed later. As a rule, you will need to pay a personal visit to the department where you applied and filled out the application form.

Minimum package of documents for opening an account with a foreign bank

The most necessary documents that you need are as follows:

• a copy of your passport certified by a notary, as well as your spouse's passport, if any;
• birth certificates of children and other documents confirming the composition of your family;
• substantiation of the reasons for opening an account (residence permit, real estate in the country of the bank, etc.);
• income statements for the last 6-12 months, certified by the Federal Tax Service;
• certificate of no criminal record.

If in Russia there is a branch of the bank in which you plan to open an account abroad, then consult a company office for advice.

Summing up, we can conclude that in order to open an account with a foreign bank, you need:

• carefully collect all the information about the requirements of a financial organization in advance;
• clarify the nuances of servicing, closing an account and providing guarantees for citizens of other countries;
• meticulously prepare the requested documents and carefully communicate with employees;
• be prepared to come personally to the country that opens the account, or spend some amount to pay for the services of an intermediary company in opening an account.

The main thing is to be patient and not wait for an instant result, and with a responsible approach, you will be able to open an account with a foreign bank.