Russia to Fine Citizens for Hiding Funds in Foreign E-Wallets

Russia is tightening control over electronic transactions by its citizens. The State Duma of the Russian Federation has approved amendments to the Code of Administrative Offenses requiring citizens to report funds held in foreign e-wallets. This move comes as part of ongoing efforts to enhance oversight over electronic transactions.

New Reporting Requirements

According to the amendments, citizens must report to the state any funds stored in foreign e-wallet systems. Failure to provide accurate information can result in significant fines. The new rules will come into effect on July 1, 2024.

Foreign e-wallets such as Skrill, Neteller, and EcoPayz are included in this category. The amendments will apply to transactions of 600,000 rubles or more within a year. Citizens who conceal funds face fines ranging from 20% to 40% of the total transaction amount. The enforcement of these rules raises questions about how tax authorities will verify transactions, as many foreign e-wallets may not readily share client information.