Russians banned from fines for refunds through foreign banks due to sanctions

The Constitutional Court (CC) of Russia ruled that, according to the provisions of the Code of Administrative Offenses (CAO) and the law on foreign exchange control, a foreign currency resident of Russia cannot be held liable for operations aimed at saving their money in foreign banks due to sanctions. This is stated in the resolution published on the website of the Constitutional Court.

“On July 12, 2021, the Constitutional Court of the Russian Federation prohibited to bring citizens to administrative responsibility when they were forced to use foreign banks to return funds to Russia … Russian citizens who have found themselves in an illegal situation due to international sanctions should be assisted, and not aggravated their difficult legal situation “, – the message says.

The decision was made after a complaint by Nikolai Kuznetsov, previously fined 30.9 million rubles. for withdrawing money from his dollar account with Transcapitalbank at Barclays Bank in London, and then to Sberbank, bypassing an account with an authorized Russian bank. At the same time, Mr. Kuznetsov tried to transfer funds to his father’s account, opened in Mosoblbank, but could not because of the sanctions.

“If, due to the sanctions, a legal foreign exchange operation has formally ceased to meet the criterion allowed in accordance with Russian currency legislation, this is not enough to declare illegal the actions of a citizen to restore ownership of his property. The decisions in the case of N. Kuznetsov must be reviewed, ”the Constitutional Court notes.

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