The government submitted to the state Duma a draft law defining the term “foreign financial instruments”, which officials and deputies will not be allowed to possess or use not only directly, but also indirectly through third parties. As reported, this bill is intended to cover civil servants and parliamentarians of the remaining loopholes in the ban on possession of foreign assets, in particular the use of foreign foundations and trusts, as well as ex-wives.
The document registered in the database of the lower chamber of Parliament, requires the introduction of amendments to certain legislative acts of the Russian Federation in the part of the definition of “foreign financial instruments”.
In particular, those suggested to be considered “securities and related financial instruments of persons (organizations and (or) physical persons), place of registration, residence or location of which is a foreign state and (or) foreign structures without forming a legal entity”.
Also to “foreign financial instruments” want to rank shares, shares in authorized (reserve) capital of organisations, the place of registration or location which is a foreign state and the property of foreign structures without forming a legal entity.
This concept is proposed to include loan contracts, if at least one party to the contract is the person or institution with a foreign “residence permit” or registration and (or) a foreign structure without forming a legal entity.
This same concept applies to a trust established in accordance with the legislation of a foreign state, the founder and (or) the beneficiary of which are the above-mentioned persons or organizations.
Also, the bill stipulates the prohibition of direct and indirect – through a third party – the possession and use of foreign financial instruments.
In early April, the Agency RBC reported that three years after the ban, the Ministry of Finance has prepared a bill, to be more precise “foreign financial instruments”, which officials and deputies will be impossible to own and use “indirectly, through third parties”. Experts pointed out that such a formulation include, potentially, all – “and ex-wives, and adult children of officials”.
The experts were reminded of the cases where officials were divorcing the wives of the transfer to them of the greater part of his property. So, in 2014, opposition politician Alexei Navalny has accused the Deputy mayor of Moscow for transport issues Maxim Liksutov in the fictitious divorce after adoption of the law prohibiting officials to own foreign assets. According to Navalny, Liksutov sold the assets of his wife, the citizen of Estonia. He Liksutov said that he divorced his wife and that he had no assets that would not correspond to Russian legislation.
Under the concept of “foreign structure without forming a legal entity” can get the funds, trusts, partnerships, partnerships, etc., in which it is also possible to hide assets in circumvention of the existing ban.
It is assumed that in the case of adoption of legislative changes violation of the prohibitions will be threatened civil servants with dismissal, while MPs – loss mandates. If the state Duma approves the document, the new law will come into force six months after its official publication.
