The competent agencies of the contracting jurisdictions will receive information from financial institutions (banks, depositaries, brokers, collective investment agencies and certain insurance companies) and automatically exchange this information with other jurisdictions on an annual basis.
Reference
Prepared by the Ministry of Finance pursuant to the Russian Government’s directive.
The directive approves the Ministry of Finance’s proposal, coordinated with the Ministry of Foreign Affairs, Ministry of Economic Development, Ministry of Communications and Mass Media, Federal Security Service, Bank of Russia, Federal Financial Monitoring Service and Federal Tax Service, related to the signing of a multilateral agreement between the relevant agencies on the automatic exchange of financial account information of 29 October, 2014 (hereinafter referred to as multilateral Agreement). The Federal Tax Service has been entrusted with signing the multilateral Agreement.
On 1 July 2015, the Convention on Mutual Administrative Assistance in Tax Matters (hereinafter referred to as Convention) came into effect with regard to the Russian Federation. The Convention makes it possible for the signatories to exchange information on tax matters automatically. Under the Convention, the automatic exchange of such information requires a separate agreement between the signatories’ relevant agencies.
The automatic exchange of financial account information on tax matters will proceed on the basis of the single Standard for Automatic Exchange of Financial Account Information (hereinafter referred to as single Standard), developed by the Organisation for Economic Co-operation and Development (OECD), which establishes substantive and technical modalities for the information exchange process.
Under the multilateral Agreement, the relevant agencies of the contracting jurisdictions will receive information from financial institutions (banks, depositaries, brokers, collective investment agencies, and certain insurance companies) and automatically exchange this information with other jurisdictions on an annual basis.
Russia’s accession to the international automatic information exchange system will provide an important tool for reducing the shadow economy and countering the use of illegal schemes for the expatriation of profit from Russia.
The document was considered and approved at a Government meeting on 28 April 2016.