Currency control

Currency or foreign exchange control is the heritage of the past and still plays an important part in the international wealth planning of private clients and businesses from the former soviet territories. Currency control regulations set a number of limitations upon the transactions between currency residents, transactions in foreign currency and to the use of foreign individual or corporate bank accounts in general. They also impose important-to-follow reporting obligations and penalties for non-compliance. The penalties for violations may be substantial. And, in view of the implementation of the international exchange of financial information provisions, the risk to be penalized for the respective violations has become really probable. Therefore, it is critical to carefully analyse the clients’ position as to the currency control rules and the consequent reporting obligations to follow.

MP Part performs periodic “health checks” of our clients’ accounts for compliance with the applicable currency control regulations and helps to work out a “remedy” plan where necessary. Or ideally, we work together with our clients to set up long-term strategy in respect of the foreign bank accounts and operational tactics to ensure the rules are complied with. Our offer includes:

  • clarification of the relevant provisions, their application and consequences;
  • analysis of currency control regulations impact over the client’s asset structure;
  • periodic “health checks” and execution of the correction plan;
  • evaluation and execution of the restructuring opportunities.

We will be glad to assist with any questions relating to currency control regulations and the actions consequent therefrom.