The Bank observes the requirements of the Russian Tax Code in the matter of conditions stipulated in the Tax Information Exchange Standard adopted by OECD, as well as regarding the provisions of the multilateral Agreement on automatic exchange of financial information signed at 29.10.2014, by virtue of which the Russian Federation joined the international exchange of financial information in 2018.
According to the Chapter 20.1 «Automatic exchange of financial information with the foreign states (territories)» of the Russian Tax Code, credit institutions are obliged to identify foreign tax residents and provide information on these persons to the Russian Federal Tax Service. Procedures for such identification, as well as procedures and forms used for provision of the corresponding financial information are established through the Russian Government’s Resolution №693 “Realization of the international financial information exchange with competent entities of the foreign states (territories)”, adopted 16.06.2018.
The list of states (territories) which participate in automatic information exchange with Russian Federation is now enclosed in the annex to the Russian Federal Tax Service Ordinance № ММВ-7-17/784 of 04.12.2018.
Furthermore, the Bank’s work is guided by the provisions of the Federal law №173-ФЗ “On peculiarities in execution of financial operations with foreign nationals and legal entities, on the introduction of amendments into the Administrative Code of the Russian Federation and abolition of certain provisions contained in the Russian Federation’s legislative acts” adopted 28.06.2014.
According to the mentioned Federal law, the Bank takes in these circumstances all appropriate and reasonable measures to identify, among persons celebrating a contract which stipulates the provision of financial services, those covered by the foreign state’s legislation on the foreign accounts taxation, including the Financial Account Tax Compliance Act (FATCA). This U.S. act is aimed at identifying American taxpayers avoiding taxes, in particular, through informing the U.S. Tax Office (IRS) on the accounts opened by American nationals and corporations and on their operations. FATCA is a transboundary act applied beyond the U.S. jurisdiction. The FATCA requirements are normally fulfilled 1) via direct relationship between the bank and IRS or 2) through an intergovernmental agreement and information exchange according to the scheme the bank – national government – IRS.