How to avoid accounts blocking

Sep, 10 2019

On July 26, 2019, Russian Central Bank has published recommendations that can help companies to avoid blocking of their assets. Account can be blocked, if bank will suspect company in money laundering.

The recommendations of the Central Bank are:

  1. Always communicate tax authorities and your bank about changes in the company’s activity (change of address, change of CEO etc.)

  2. Regularly check information about your company in Unified State Register of Legal Entities. Tax authorities frequently send letters companies’ addresses in order to verify their validity. If the letter is not answered, information about invalidity of the address will be recorded in Register. Such record can lead to severe fines and compulsory company liquidation.

  3. Complete payment documents as extensively as possible. Apart from contract reference details, specify for what goods and services the payment is made.

  4. If bank suspects you in money laundering, it will send you a formal request to provide bank with some documents. Send all required documents to the bank immediately. If the bank requests the contract, it is better to send also specifications, invoices and other documents that can substantiate economic rationale of the payment.

  5. If business consists of several companies, banks can block accounts of these companies. In this case businessmen can be suspected in obtaining unjustified tax benefits.