Law passed allowing Russian financial institutions to participate in FATCA

July 2014
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Law passed allowing Russian financial institutions to participate in FATCA

At a glance

Federal Law No. 173-FZ was developed to allow Russian financial institutions to participate in FATCA, came into effect on 30 June 2014.

Federal Law No. 173-FZ of 28 June 2014 “On Specifics in Conducting Financial Transactions with Foreign Nationals and Legal Entities, on Amendments to the Russian Administrative Offences Code and Invalidation of Certain Provisions of Russian Legislative Acts” (hereinafter, the "Law"), which was developed to allow Russian financial institutions to participate in FATCA, came into effect on 30 June 2014.

Many Russian financial institutions longed to see the Law passed, especially after it was reported that an intergovernmental agreement between Russia and the USA would not be signed. Nonetheless, please note that the Law does not exempt Russian financial institutions from compliance with FATCA obligations.