On Aug. 21, RUS CB proposed foreign bank branch reporting rules.
RUS CB proposed ordinance on the criteria for significant inaccuracy of reporting data of a branch of a foreign bank, through which a foreign bank operates on the territory of the Russia and published explanatory note for the ordinance.
Consultation documents are only available on RUS CB website until comment deadline.
Summary
The ord is developed in accordance with law 275-FZ amending law on banking and banking activities and certain laws of Russia in force from Sep. 1, 2024, see #221234.
The law defines the grounds on which the Bank of Russia may revoke the license of a foreign bank operating in the territory of the Russian Federation through its branch.
One of the grounds is significantly inaccurate reporting by the foreign bank branch.
The ord establishes the criteria under which the reporting of a foreign bank branch is recognized as significantly inaccurate, and the documents that confirm these criteria.
Reporting is considered significantly inaccurate if it: Conceals non-compliance with mandatory regulations, conceals non-fulfillment of any obligations to creditors.
Does not reflect actual transactions of over 1mn RUB that the foreign bank branch did not actually carry out and conceals grounds for revoking the foreign bank's license.
Documents confirming the significant inaccuracy of the reporting of a foreign bank branch include the reporting and documents obtained by RUS CB during supervision.
including those regarding completed transactions and unfulfilled obligations to clients.
Effectiveness
Comments and feedback are expected by Sep. 3, 2024.
Dec. 2024 Ord Issued
On Dec. 12, 2024, RUS CB issued ord 6925-U on the criteria for significant inaccuracy of reporting data of a branch of a foreign bank, through which a foreign bank operates on the territory of the Russia which enters into force on Dec. 22, 2024.
On the same day, RUS CB issued rules for foreign bank financial statements, #236926.
Regulators
RUS CB
Entity Types
Bank
Reference
PR 12/12/2024; Ord 6925-U, 11/5/2024; CP, 8/21/2024; Law 275-FZ 8/8/2024;
