The Central Bank advocated mitigating liability for violations of currency legislation

The Central Bank supported the idea of ​​not applying administrative liability for residents who violated the requirements of Russian currency legislation due to sanctions restrictions in other countries. This is stated in the draft main directions for the development of the Russian financial market until 2026 (.pdf)

The Bank of Russia materials say that the maximum mitigation of administrative liability for violations in such cases is “justified.” “To create favorable conditions for foreign trade activities,” it is necessary to reduce the administrative burden when passing currency control procedures, the regulator believes.

The Central Bank also commented on restrictions on capital movements, which were necessary in the “acute phase of the introduction of sanctions in 2022.” Most of them were withdrawn due to costs for citizens and businesses, as well as difficulties for foreign trade and financial settlements. Some restrictions remain in place as part of the response to sanctions.

“In general, restrictions on the movement of capital should be limited in time, and in the future, as the economy adapts, they should be canceled so as not to create obstacles to foreign economic activity,” says the Bank of Russia materials.

The Central Bank has repeatedly performed against restrictions on capital flows, since they are only appropriate in the short term to maintain the functioning of the financial system in the face of stability risks. The Central Bank also advocates the gradual liberalization of currency restrictions. In the future, it is planned to maintain some of them, including a ban on the purchase of securities of issuers from unfriendly countries for unqualified investors.