Foreign banks to open their branches in Russia
Foreign banks will be allowed to set up their branches in the Russian Federation, while at present they can establish only subsidiary banks or representative offices. The draft law stipulating the procedure for setting up branches was adopted by the State Duma in the second reading on 30 July.
Such branches will be authorised to open and service bank accounts for legal entities; transfer funds on behalf of legal entities, including correspondent banks; collect cash, promissory notes, payment and settlement documents; and provide cash services to legal entities. In addition, they will be able to issue guarantees and sureties, lease special premises, safety deposit boxes for storing documents and valuables, conduct leasing transactions, and provide advisory and information services.
The Bank of Russia will supervise the operations of foreign banks’ branches. The law is due to take effect on 1 September 2024.