Currency control in the Russian Federation is carried out by the government in order to achieve stable economic growth in the country, and to regulate inflation. In a global sense, it aims to achieve a leading position in the international arena.
Current legislation supports currency control in the Russian Federation. Back in 1992, the government adopted the law “On Currency Control and Currency Regulation”, which establishes the rights and obligations of regulatory authorities, as well as provides for penalties for violation of legislative acts of legal entities and individuals. This bill was introduced in order to stabilize and strengthen the national currency, to prevent the outflow of capital abroad. In addition, the system of collecting information necessary for analytical activities has been simplified, which allows us to study the movement of capital in the country. Currency control authorities focus on increasing the export of domestic products.
It is customary to distinguish the functional and subjective component of the control mechanism. The first refers to the totality of forms and methods by which regulatory actions are carried out. And the subjective side assumes the existence of special institutions and organizations. Currency control in the Russian Federation is based on the functioning of the parties involved, which in turn can be divided directly into control bodies and specialists involved in the study of foreign economic activity.
Control organizations are engaged in the adjustment of regulations and the development of innovations, which will subsequently be binding on compliance. If we talk about business entities, then for conducting operations with foreign currency they must use the legally established form of reporting and accounting. In our country, the main bodies vested with the right to exercise control are:
- Ministry of Finance (its special department);
- Bank of Russia
- Customs Committee of the Russian Federation.
Separately, it is worth noting the presence of control agents who have special rights and are accountable to the above authorities. Such institutions include the tax service, all commercial banks regulated by the central bank, organizations subordinate to the customs committee.
Currency control is the activity of special units aimed at improving the economic situation in the country by regulating foreign exchange transactions. For example, the Bank of Russia has created a separate department, which is involved in the development and adoption of new bills, in addition, it actively cooperates with foreign missions, draws up international contracts. This unit is responsible for conducting research and compiling statistical reports.
Authorized credit organizations have the right to conduct currency transactions only on the basis of a license issued by a national bank. Such institutions exercise currency control in the Russian Federation at the level of residents and non-residents of the country. They can give instructions and instructions to their representative offices and branches in other cities, notify the Bank of Russia of the application of innovations in practice and their effectiveness, and conduct analytical work. In case of detection of contradictions or inconveniences, the agents put forward their proposals to improve the established standards.
According to the current legislation, currency control in a bank can be carried out only with a license, which can be of three types:
- Simple.
- Extended.
- General.
A simple license allows commercial banks only to raise funds in foreign currency in deposit accounts. The expanded one also gives the opportunity to carry out foreign economic activity, working with correspondent accounts in foreign banks. Most credit institutions that have received a general license have the most authority, since if it is available, you can conduct any operations on international markets.