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The bill obliges the banks to inform Russia’s Federal Financial Monitoring Service, The Federal Tax Service and the central bank about such clients and to notify them of receiving IRS requests. The Federal Financial Monitoring Service can prohibit providing such information to the US.
Foreign banks located outside Russia will have to inform Russia’s Federal Tax Service about Russians’ accounts and deposits opened with them, according to the bill.
The bill was introduced provide legal conditions for the banks to comply with the US’s Foreign Account Tax Compliance Act (FATCA), which will come in force on July 1. The FATCA obliges banks to send information about US clients and their transactions to the IRS to avoid tax frauds committed by US citizens.