Capital control: export of more than $100 thousand from the Russian Federation will require a declaration of origin

Since the beginning of September, in order to export cash out of the country in the amount of an amount comparable to $ 100,000, citizens will have to confirm the legality of the sources of this money, said Anatoly Aksakov, chairman of the State Duma Committee on the Financial Market. In addition, to move gold bars weighing 100 g or more across the border, you will need to issue a separate standard permit. What are the goals of introducing these requirements, what risks the government seeks to reduce, and whether the introduction of these measures can affect the behavior of private investors? in the Izvestia article.

Increasing transparency

It is obvious that the initiative is aimed at increasing the transparency of financial flows, Artem Kiryanov, deputy chairman of the State Duma Committee on Economic Policy, told Izvestia. Such steps make it possible to take into account the capital located inside the country and partially stimulate its use in the interests of the Russian economy. The money that is being withdrawn abroad is not a priority right now.

— In general, the approach seems justified. If desired, it could have been implemented earlier. But even in the current conditions, it can play a positive role, including in terms of supporting mechanisms for financing economic development," the deputy noted.

A similar approach has long been used in many countries, Andrei Zhukovsky, a leading researcher at the Institute of Regional Economics and Inter-Budgetary Relations at the Financial University under the Government of the Russian Federation, told Izvestia. Government agencies responsible for customs administration, taxes, and financial regulation strive to establish clear and predictable rules of the game.

— Setting the limit at the level of $100,000 seems reasonable and adequate given the current macroeconomic situation. At the same time, it is fundamentally important to bring the new requirements in advance and in an accessible form to both citizens of the country and foreign guests," he said.

Practical experience shows that transparent and understandable regulations contribute to the formation of a favorable business environment and simplify the perception of norms related to the movement of capital and precious metals across borders.

If we talk about the possible impact of such decisions on private investors, the key factor here may be the level of service support, Andrei Zhukovsky believes. A high degree of digitalization and the development of online tools can play a positive role.

"In particular, the creation by the Federal Customs Service of a convenient digital platform with detailed explanations of legislation and current practice of its application, available in the main world languages, could increase the confidence of investors and representatives of small businesses, as well as stimulate their economic activity and interest in working in the country," the expert said.

Behavioral shifts

These are measures aimed at strengthening currency supervision, Vladimir Eremkin, senior researcher at the IPEI Structural Research Laboratory at the Presidential Academy, confirmed to Izvestia.

— The reduction of opportunities for official cross—border bank transfers has provoked the growth of informal ways of moving funds outside the country - through couriers or directly by the owners of cash. The new rules actually block the legal export of significant amounts of funds, the origin of which has not been declared," he stressed.

Gold in the form of bullion, according to him, is a convenient and quickly implemented tool that can also be used to transport "shadow" money abroad. That is why comparable restrictions were applied to operations with precious metals.

Apparently, the regulator has recorded an atypically high interest in foreign currency in large denominations, as well as a sharp increase in sales of investment gold through banking channels — volumes that do not correspond to classical savings strategies, the expert noted. This has become one of the triggers for the introduction of additional barriers.

— The key task, as it seems, is to strengthen fiscal discipline, — explained Vladimir Eremkin. — Significant cash flows across borders are often associated with income that has bypassed the banking system and, most likely, is not reflected in the tax base.

Against the background of sanctions pressure and restrictions on official financial intermediaries, the informal export of currency and gold has become one of the mechanisms of capital flight, he noted. This process increases the pressure on the national currency and reduces the available liquidity within the country.

In this regard, the State is interested in maintaining control over the movement of funds and in preventing their use to circumvent external restrictions or finance illegal activities.

If we talk about the risks that the authorities are trying to minimize, they are directly related to the objectives of regulation. First of all, this is the withdrawal of income from taxation, countering the legalization of funds of questionable origin and preventing the financing of illegal operations.

A separate block is the risk caused by uncontrolled capital outflow, the expert recalled. For private investors, such changes can lead to certain behavioral shifts. On the one hand, the administrative burden is increasing and the legal withdrawal of capital is becoming more complicated, which is especially sensitive for those who previously used cash forms of funds transfer for international diversification.

"On the other hand, we cannot rule out an increase in interest in circumvention practices, including splitting amounts or resorting to informal channels," the expert said. — Additionally, increased attention is likely to be paid to digital and non-cash cross-border settlement tools, including alternative financial technologies.

The innovations will not affect legitimate cross-border trade with the states of the Eurasian Economic Union. Interaction with all EAEU countries is ensured by existing cashless payment mechanisms, whereas the use of cash in trade transactions with non-residents in itself contradicts the requirements of currency regulation.

At the same time, the authorities do not intend to impose any additional restrictions on the cross-border movement of valuables.

Izvestia sent requests to the Ministry of Energy, the Ministry of Finance and the Central Bank, but no response had been received at the time of publication.