The Federal Tax Service of Russia (FTS) has instructed territorial authorities, in cooperation with the police, to identify violations related to the purchase and sale of foreign currency outside banks. This was reported by RBC citing a letter from the agency.
The FTS noted that currency is currently sold through social networks, Telegram channels and other various services on the Internet. The agency believes that this threatens “the stability of Russia’s currency and the stability of the domestic foreign exchange market”.
In early March, the agency said it had suspended checks on compliance with currency legislation; however the FTS clarified that currency speculation by private individuals is not affected.
For operational oversight, the agency turned to the Ministry of Internal Affairs. Cooperation between the two agencies is aimed at identifying and suppressing unlawful activities of organizations and individuals evading taxation, including those engaged in illegal entrepreneurship.
The FTS emphasised that trading currency outside the banking system constitutes an administrative offense. For exchanges on the shadow market, fines for individuals and legal entities range from 75% to 100% of the transaction amount.
As noted, following Russia’s invasion of Ukraine, some of the central bank’s reserves were frozen, many countries imposed sanctions, and several companies left the country.
The Bank of Russia prohibited banks from selling cash currency and limited withdrawals from active deposits to $10,000 from 9 March to 9 September 2022.
Against the backdrop of the ban on currency operations in Russia, the black cryptocurrency market intensified.
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