Duma, in second reading, allows seizure of digital assets from officials

On February 15, the State Duma adopted in the second reading a bill allowing the state, through the courts, to seize from officials digital assets and funds in bank accounts if the amount of receipts exceeds official income over the past three years, and the legality of the funds is not confirmed. About this сообщает РИА Новости.

Control over the accuracy of the information is entrusted to the General Prosecutor’s Office. In case of violations, the agency will file a court petition to recover to the state treasury the corresponding amount if it exceeds 10,000 rubles.

Requests should be sent not only to banks, payment agents, the Federal Tax Service, but also to operators that issue or deal in digital financial assets (DFAs).

“Since a new instrument has appeared, accordingly it must be declared, and income from it must also be disclosed,” explained in January the head of the State Duma Committee on the Financial Market, Anatoly Aksakov.

The corresponding amendments are being introduced to the laws “On Banks and Banking Activity” and “On Countering Corruption.” It is expected that they will take effect ten days after the official publication of the new law.

The bill’s third reading will take place on 16 February.

Under current law, the state can convert into Russia’s revenue real estate, vehicles, securities and shareholdings in companies if public officials under scrutiny for inconsistencies between spending and income have not demonstrated the legality of the funds.

In late November 2020 the Russian government approved a bill on declaring cryptocurrency transactions and submitted it to the State Duma. Additional, as yet unapproved, amendments envisage administrative and criminal liability for violations of the reporting regime.

In December of the same year, President Vladimir Putin signed a decree obliging officials and applicants for relevant posts to provide information on their existing digital financial assets.

From January 1, 2021, the law “On DFAs” came into force. It recognises cryptocurrencies as property and prohibits using them to pay for goods and services within the Russian Federation.

In the same month, the Ministry of Labour and Social Protection issued an informational letter, in which it told civil servants to dispose of their cryptocurrency holdings by 1 April 2021.

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