Exchange control in the Russian Federation

Foreign exchange control in the Russian Federation is carried out by the government with the goal of achieving a stable growth of the country's economy, regulating the rate of inflation. In the global sense, it aims to achieve a leading position in the international arena.

The current legislation supports foreign exchange control in the Russian Federation. Back in 1992, the government adopted the law "On Currency Control and Currency Regulation", which establishes the rights and obligations of supervisory bodies, as well as provides penalties for violation of legislative acts of legal entities and individuals. This bill was introduced with the aim of stabilizing and strengthening the national monetary unit, preventing the outflow of capital abroad. In addition, the system of gathering information necessary for analytical activities was simplified, which allows us to examine the movement of capital in the country. Foreign exchange control bodies focus on increasing the volume of exports of domestic products.

It is accepted to distinguish the functional and subjective component of the control mechanism. The first is understood as the set of forms and methods by which regulatory actions are carried out. And the subjective side presupposes the existence of special institutions and organizations. Currency control in the Russian Federation is based on the functioning of the parties-participants, which in turn can be divided directly into the control bodies and specialists involved in the study of foreign economic activity.

The control organizations are engaged in the adjustment of normative acts and the development of innovations, which will subsequently be mandatory for compliance. If we talk about economic entities, then to conduct operations with foreign currency, they must use a statutory form of reporting and accounting. In our country, the main bodies vested with the right to exercise control are:

• Ministry of Finance (its special department);
• Bank of Russia;
• Customs Committee of the Russian Federation.

Separately, it is worth noting the presence of control agents who have special rights and are accountable to the above-mentioned instances. These institutions include the tax service, all commercial banks regulated by the central bank, organizations under the jurisdiction of the customs committee.

Currency control is the activity of special units aimed at improving the economic situation in the country by regulating foreign exchange transactions. For example, the Bank of Russia created a separate department that participates in the drafting and adoption of new bills, in addition, it actively cooperates with foreign missions, drafts international contracts. This unit is responsible for conducting research and preparing statistical reports.

Authorized credit organizations have the right to conduct currency transactions only on the basis of a license issued by a national bank. Such institutions carry out currency control in the Russian Federation at the level of residents and non-residents of the country. They can give instructions and instructions to their representations and branches in other cities, notify the Bank of Russia about the application of innovations in practice and their effectiveness, and conduct analytical work. In case of discrepancies or inconveniences, agents put forward their proposals for improving the established norms.

According to the current legislation, currency control in the bank can be carried out only if there is a license, which can be of three types:

1. Simple.
2. Advanced.
3. General.

A simple license allows commercial banks only to attract funds in foreign currency to deposit accounts. The expanded gives the chance also to carry out foreign trade activities, working with correspondent accounts in foreign banks. Most of the powers of credit institutions that have received a general license, since it is possible to conduct any operations on international markets.