Regulator recommends that banks notify their clients of operation suspension imposed by tax authorities
The Bank of Russia recommends that credit institutions proactively notify their clients if operations on their accounts are suspended subject to the decision of a tax agency immediately after such suspension is imposed. This information is given in the regulator’s methodological recommendations for banks.
The powers of tax authorities to make decisions on suspending the operations of bank accounts and the electronic payments of organisations and individual entrepreneurs are stipulated in the Tax Code. If a tax agency makes such a decision, it must send the document to the bank, and a copy of it to the person it concerns.
The regulator emphasises that there are cases when credit institutions’ clients are not informed of the reasons why the bank has suspended operations on their accounts. ‘These recommendations will promote faster notification of clients and efficient communication between credit institutions and businesses and will eliminate misunderstandings in the relations between financial institutions and entrepreneurs,’ said Dmitry Skobelkin, Deputy Governor of the Bank of Russia.