Russia Plans to Ban Sharing of 'Banking Secrets' with others

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Russia Plans to Ban Sharing of 'Banking Secrets' with others
21 Apr 2022
6 min read

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News Synopsis

On Wednesday, the State Duma informed that  Russia's lower house of parliament has granted its approval to draft a bill. The said bill will ban Russian banks from sharing "banking secrets" with foreigners. This step has been taken to protect the Russian financial sector. Russian Authorities have already allowed Russia’s companies and banks, to not reveal any information on securities issued and lists of contractors in order to protect themselves from further possible sanctions. Additionally, the Central Bank of Russia announced that it will not publish banks' financial statements on its website until the month of October.

The Duma's statement told that Russian credit institutions will now be restricted from providing relevant authorities of foreign states with information about customers and their transactions as well as about beneficiaries and beneficial owners. The Duma in its statement said, "The law will minimise the risks associated with the adoption by unfriendly states of changes to national legislative acts aimed at obtaining from foreign banks, under the threat of penalties, confidential information constituting a banking secret.” The statement by the Duma indicated lawmakers had approved the bill in a third and final reading. For the bill to become effective, it still needs to be approved by the upper house of parliament and signed by President Vladimir Putin.