BechBruun Dragsted International AS Law Firm

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Bech-Bruun Dragsted International A/S Law Firm
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LIABILITY FOR VIOLATION OF CURRENCY LEGISLATION
Moscow, 1 March 2005
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ARTICLE 15.25 OF THE CODE OF ADMINISTRATIVE
OFFENCES OF THE RUSSIAN FEDERATION

• Section 1
• Carrying out unlawful currency operations that
  are currency operations prohibited by Russian
  currency legislation, or carrying out of currency
  operations that fail to meet established
  requirements of using a special account or
  reserving requirements, or debiting and/or
  crediting funds, internal or external securities
  from and to a special account without meeting the
  reserving requirements.
• Sanction imposition of administrative fine on
  individuals, individual entrepreneurs or legal
  entities in the range between three-quarter to
  the full amount, respectively, of unlawful
  currency operation, or funds, or value of
  internal and external securities that were
  debited and/or credited in breach of the
  reserving requirements.

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ARTICLE 15.25 OF THE CODE OF ADMINISTRATIVE
OFFENCES OF THE RUSSIAN FEDERATION

• Section 2
• Breach of the established procedure for opening
  bank accounts (deposits) in banks located outside
  of the Russian Federation.
• Sanction imposition of administrative fine on
  individuals between 10 to 15 minimum statutory
  monthly wages1, on officials between 50 to
  100 minimum statutory monthly wages, on legal
  entities between 500 to 1000 minimum statutory
  monthly wages 1 The current minimum statutory
  wage amounts to RUR 100 (approx. USD 3.6).

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ARTICLE 15.25 OF THE CODE OF ADMINISTRATIVE
OFFENCES OF THE RUSSIAN FEDERATION

• Section 3
• Failure to perform mandatory sale of portion of
  currency proceeds as well as breach of the
  established procedure for mandatory sale of
  portion of currency proceeds.
• Sanction imposition of administrative fine on
  individual entrepreneurs and legal entities in
  the range of three-quarter to the full amount of
  the currency proceeds that was not sold in
  accordance with the established procedure.

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ARTICLE 15.25 OF THE CODE OF ADMINISTRATIVE
OFFENCES OF THE RUSSIAN FEDERATION

• Section 4
• Residents failure to timely receive foreign
  currency or Russian currency on their bank
  accounts in authorised banks for goods, works and
  services transferred, completed and rendered to
  non-residents or for transfer to non-residents of
  information or results of intellectual activity,
  including exclusive rights to such results.
• Sanction imposition of administrative fine to
  individual entrepreneurs and legal entities in
  the range between three-quarter to the full
  amount of funds not deposited to the accounts in
  the authorised banks.

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ARTICLE 15.25 OF THE CODE OF ADMINISTRATIVE
OFFENCES OF THE RUSSIAN FEDERATION

• Section 5
• Residents failure to timely return to the
  Russian Federation funds paid to non-residents
  for non-imported to the Russian Federation
  customs territory (or non-received in the Russian
  Federation customs territory) goods,
  non-completed works, non-rendered services or
  non-transferred information or results of
  intellectual activity, including exclusive rights
  to such results.
• Sanction imposition of administrative fine to
  individual entrepreneurs and legal entities in
  the range between three-quarter to the full
  amount of funds not returned to the Russian
  Federation.

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ARTICLE 15.25 OF THE CODE OF ADMINISTRATIVE
OFFENCES OF THE RUSSIAN FEDERATION

• Section 6
• Failure to comply with the procedure or deadlines
  for reporting currency operations, breach of the
  established procedure for use of special accounts
  and/or reservation, breach of uniform rules for
  compiling passports of transactions or breach of
  storage periods for reporting documents or
  passports of transactions.
• Sanction imposition of administrative fine on
  officials between 40 to 50 minimum statutory
  monthly wages, on legal entities between 400 to
  500 minimum statutory monthly wages.

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ARTICLE 15.25 OF THE CODE OF ADMINISTRATIVE
OFFENCES OF THE RUSSIAN FEDERATION

• Section 7
• Breach of the established procedure for import
  and transfer to the Russian Federation and export
  and transfer from the Russian Federation of
  Russian Federation currency and internal
  securities in documentary form.
• Sanction imposition of administrative fine on
  individuals between 5 to 10 minimum statutory
  monthly wages, officials between 10 to 20
  minimum statutory monthly wages, on legal
  entities between 50 to 100 minimum statutory
  monthly wages.