Belarus’ govt, NBB to be entitled to impose foreign exchange restrictions for up to 1 year – law
<p> MINSK, Jul 8 - PrimePress. The National Bank and the government of Belarus will have the right to introduce by joint decision foreign exchange restrictions for up to one year in case of a threat to national economic security, including a threat to stability of the financial system, if the situation cannot be resolved otherwise (law No.36-З ‘On Foreign Exchange Regulation and Foreign Exchange Monitoring’ of June 30, 2020 posted on the National Legal Internet Portal of Belarus on July 8). </p> <p> </p> <p> The law defines the threat to economic security as emerged circumstances, under which measures to alleviate or lift foreign exchange restrictions may lead to a deterioration in the economic and financial situation, undermine national security and impede the maintenance of public order, as well as problems with the balance of payments, which may result in a decrease in gold and foreign exchange reserves below the established threshold, or sharp fluctuations in the exchange rate of the Belarusian ruble. </p> <p> </p> <p> The restrictions provide for a ban on foreign exchange and currency exchange operations, limits on the volume, quantity and timing of foreign exchange and currency exchange transactions, payment currencies, reservation of a part, entire amount or a sum multiple of the total amount of a foreign exchange transaction; the requirement to obtain special permits of the National Bank for foreign exchange transactions, mandatory sale of foreign exchange received by resident legal entities, and restrictions on opening and administration of accounts with foreign banks by residents. </p> <p> </p> <p> Terms of monitoring of foreign exchange operations </p> <p> </p> <p> The law defines the terms for monitoring foreign exchange transactions, which includes the collection, registration and analysis of information on foreign exchange transactions on the domestic currency market conducted by residents under registered agreements, as well as on goods received. </p> <p> </p> <p> Monitoring covers Belarusian banks, the Development Bank of the Republic of Belarus OJSC and other residents. Monitoring is carried out by the National Bank in collaboration with banks, the Development Bank of the Republic of Belarus, State Control Committee, State Customs Committee and other government agencies. </p> <p> </p> <p> The National Bank compiles a database to monitor foreign exchange transactions. </p> <p> </p> <p> FX monitoring </p> <p> </p> <p> The law establishes the rules for exercising foreign exchange control in Belarus aimed at ensuring that residents and non-residents comply with the currency legislation when conducting foreign exchange transactions, and that monitoring agencies obtain exhaustive and reliable information about foreign exchange transactions carried out by residents and non-residents. </p> <p> </p> <p> The main objectives of foreign exchange monitoring are to prevent, detect and suppress violations during foreign exchange transactions, and ensure monitoring of the movement of foreign exchange assets. </p> <p> </p> <p> The government, State Control Committee, National Bank and State Customs Committee are vested with the right to exercise foreign exchange monitoring. </p> <p> </p> <p> The functions of the National Bank include monitoring of the provision by banks and the Development Bank of the Republic of Belarus of information on foreign exchange transactions conducted by residents and non-residents. The National Bank is also entitled to hold banks and the Development Bank of the Republic of Belarus liable for violating currency legislation. The National Bank is entitled to request and obtain information from state bodies and other organizations, including personal data (without written consent of individuals), and to access (including remotely) information systems that contain such data. </p> <p> </p> <p> Procedure for FX transactions </p> <p> </p> <p> The law regulates the procedure for conducting currency transactions and administrating accounts of residents and non-residents. </p> <p> </p> <p> The law introduces a number of restrictions on foreign exchange operations between banks and residents, between resident legal entities and individuals, between resident and non-resident legal entities and between non-residents. </p> <p> </p> <p> The use of foreign exchange is prohibited in sales and purchases of precious metals and/or precious stones between Belarusian banks and other residents; settlements under bank guarantees if the guaranteed main monetary obligation between the principal and the beneficiary is denominated in Belarusian rubles. </p> <p> </p> <p> The law prohibits the use of foreign exchange under financing agreements against the assignment of a monetary claim (factoring agreement) if the main monetary obligation between the creditor and the debtor is denominated in Belarusian rubles. </p> <p> </p> <p> The law establishes a list of non-cash foreign exchange transactions between resident legal entities through accounts opened with Belarusian or foreign banks. This includes foreign exchange operations if an embassy, consular office or other representative office of Belarus outside the country is one of the parties; depositing foreign exchange assets into a notary deposit, court deposit, law enforcement or criminal prosecution body’s deposit, and withdrawing or returning foreign exchange assets to such deposits. </p> <p> </p> <p> Transactions with the Ministry of Finance on operations with government securities in foreign exchange upon their placement, redemption, early redemption and payoff, transactions with the National Bank on operations with National Bank’s securities with the National Bank in foreign exchange upon their placement, redemption, early redemption, payoff and some other operations are permitted. </p> <p> </p> <p> The law establishes the right of residents to open accounts in Belarusian rubles and foreign exchange with foreign banks without limitation. </p> <p> </p> <p> The main provisions of the law ‘On Foreign Exchange Regulation and Foreign Exchange Monitoring’ enter into force one year after its official publication. End </p> <p> </p>
2020-07-09
Primepress
MINSK, Jul 8 - PrimePress. The National Bank and the government of Belarus will have the right to introduce by joint decision foreign exchange restrictions for up to one year in case of a threat to national economic security, including a threat to stability of the financial system, if the situation cannot be resolved otherwise (law No.36-З ‘On Foreign Exchange Regulation and Foreign Exchange Monitoring’ of June 30, 2020 posted on the National Legal Internet Portal of Belarus on July 8).
The law defines the threat to economic security as emerged circumstances, under which measures to alleviate or lift foreign exchange restrictions may lead to a deterioration in the economic and financial situation, undermine national security and impede the maintenance of public order, as well as problems with the balance of payments, which may result in a decrease in gold and foreign exchange reserves below the established threshold, or sharp fluctuations in the exchange rate of the Belarusian ruble.
The restrictions provide for a ban on foreign exchange and currency exchange operations, limits on the volume, quantity and timing of foreign exchange and currency exchange transactions, payment currencies, reservation of a part, entire amount or a sum multiple of the total amount of a foreign exchange transaction; the requirement to obtain special permits of the National Bank for foreign exchange transactions, mandatory sale of foreign exchange received by resident legal entities, and restrictions on opening and administration of accounts with foreign banks by residents.
Terms of monitoring of foreign exchange operations
The law defines the terms for monitoring foreign exchange transactions, which includes the collection, registration and analysis of information on foreign exchange transactions on the domestic currency market conducted by residents under registered agreements, as well as on goods received.
Monitoring covers Belarusian banks, the Development Bank of the Republic of Belarus OJSC and other residents. Monitoring is carried out by the National Bank in collaboration with banks, the Development Bank of the Republic of Belarus, State Control Committee, State Customs Committee and other government agencies.
The National Bank compiles a database to monitor foreign exchange transactions.
FX monitoring
The law establishes the rules for exercising foreign exchange control in Belarus aimed at ensuring that residents and non-residents comply with the currency legislation when conducting foreign exchange transactions, and that monitoring agencies obtain exhaustive and reliable information about foreign exchange transactions carried out by residents and non-residents.
The main objectives of foreign exchange monitoring are to prevent, detect and suppress violations during foreign exchange transactions, and ensure monitoring of the movement of foreign exchange assets.
The government, State Control Committee, National Bank and State Customs Committee are vested with the right to exercise foreign exchange monitoring.
The functions of the National Bank include monitoring of the provision by banks and the Development Bank of the Republic of Belarus of information on foreign exchange transactions conducted by residents and non-residents. The National Bank is also entitled to hold banks and the Development Bank of the Republic of Belarus liable for violating currency legislation. The National Bank is entitled to request and obtain information from state bodies and other organizations, including personal data (without written consent of individuals), and to access (including remotely) information systems that contain such data.
Procedure for FX transactions
The law regulates the procedure for conducting currency transactions and administrating accounts of residents and non-residents.
The law introduces a number of restrictions on foreign exchange operations between banks and residents, between resident legal entities and individuals, between resident and non-resident legal entities and between non-residents.
The use of foreign exchange is prohibited in sales and purchases of precious metals and/or precious stones between Belarusian banks and other residents; settlements under bank guarantees if the guaranteed main monetary obligation between the principal and the beneficiary is denominated in Belarusian rubles.
The law prohibits the use of foreign exchange under financing agreements against the assignment of a monetary claim (factoring agreement) if the main monetary obligation between the creditor and the debtor is denominated in Belarusian rubles.
The law establishes a list of non-cash foreign exchange transactions between resident legal entities through accounts opened with Belarusian or foreign banks. This includes foreign exchange operations if an embassy, consular office or other representative office of Belarus outside the country is one of the parties; depositing foreign exchange assets into a notary deposit, court deposit, law enforcement or criminal prosecution body’s deposit, and withdrawing or returning foreign exchange assets to such deposits.
Transactions with the Ministry of Finance on operations with government securities in foreign exchange upon their placement, redemption, early redemption and payoff, transactions with the National Bank on operations with National Bank’s securities with the National Bank in foreign exchange upon their placement, redemption, early redemption, payoff and some other operations are permitted.
The law establishes the right of residents to open accounts in Belarusian rubles and foreign exchange with foreign banks without limitation.
The main provisions of the law ‘On Foreign Exchange Regulation and Foreign Exchange Monitoring’ enter into force one year after its official publication. End