Foreign Exchange Control Audits by Tax and Customs Authorities in Russia: Legal Defense Strategies

July 27, 2026

BRACE Law Firm©

The intensified oversight by tax and customs authorities necessitates a detailed analysis of the existing legal defense mechanisms during foreign exchange control audits. This legal survey analyzes the regulation of foreign exchange control, the specific features of audits conducted by tax and customs authorities, relevant jurisprudence, and legal defense mechanisms.

The Authorities Competent to Conduct Foreign Exchange Control

The foundation of the legal regulation for foreign exchange control in the Russian Federation is Federal Law No. 173-FZ dated December 10, 2003, On Foreign Exchange Regulation and Foreign Exchange Control (the "Federal Law No. 173-FZ" or the "Law on Foreign Exchange Regulation and Foreign Exchange Control").

The foreign exchange control authorities are (Item 2 of Article 22 of the Federal Law No. 173-FZ and Subitem "b" of Item 2 of Decree of the President of Russia No. 41 dated February 2, 2016, On Certain Issues of State Control and Supervision in the Financial and Budgetary Sphere):

the Bank of Russia;
the Federal Customs Service (the "FCS");
the Federal Tax Service (the "FTS").

The FCS exercises control over residents' compliance with foreign exchange legislation requirements when executing foreign exchange operations associated with moving goods across the customs border of the EAEU, and the import of goods into and export from the Russian Federation. This also includes monitoring residents' compliance with repatriation requirements and the submission of supporting documents.

The FTS oversees compliance with foreign exchange legislation requirements during foreign exchange operations (excluding foreign exchange operations related to moving goods across the customs border of the Eurasian Economic Union and the import and export of goods to and from the Russian Federation), adherence to the terms of licenses and permits, as well as residents' (other than authorized banks) obligations to notify the tax authorities at their place of registration regarding the opening (closing, or changing of details) of accounts (deposits) in banks located outside the Russian Federation, and to submit reports on the movement of funds across such accounts (deposits).

In accordance with Article 222 of Federal Law No. 289-FZ dated August 3, 2018, On Customs Regulation in the Russian Federation and on Amending Certain Legislative Acts of the Russian Federation, customs and tax authorities interact and cooperate to ensure:

the collection of customs payments, as well as special, antidumping, and countervailing duties;
the verification of the correct calculation and timely payment, refund (offsetting), and enforcement of their collection;
the resolution of other matters falling within the competence of customs and tax authorities.

As a result of joint actions between January and December 2025, customs authorities, through interaction with tax authorities, assessed an additional 11,637,000,000 rubles and recovered 7,056,000,000 rubles. In the preceding year, the authorities assessed an additional 14,000,000,000 rubles and recovered 12,000,000,000 rubles. The primary identified violations include the underestimation of the customs value of goods, the declaration of inaccurate or erroneous information regarding the classification code of goods in accordance with the EAEU commodity nomenclature, and the illicit circulation of goods.[1]

Despite the intent of the FCS and FTS to consolidate their efforts and optimize interagency cooperation, the subject matters and targets of control for these agencies retain their specific characteristics. Customs authorities focus their control over goods on physical characteristics, while tax authorities concentrate on auditing the financial results of taxpayers involved in the circulation of foreign goods or utilizing them in their economic activities. It is worth noting that, although an obvious interconnection exists between these areas, the detection of tax offenses does not constitute direct evidence of violations in the sphere of customs regulation.

To perform foreign exchange control over foreign exchange operations executed by residents, as well as the opening and maintaining of accounts, authorized banks acting as foreign exchange control agents shall provide customs and tax authorities, upon request, with duly certified copies of documents at their disposal, provided that the requested documents are included in the list specified in Part 4 of Article 23 of the Law on Foreign Exchange Regulation and Foreign Exchange Control. These include, for example, documents (draft documents) serving as the basis for foreign exchange operations, including agreements (contracts) and any annexes and (or) amendments thereto, customs declarations, and documents confirming the import and export of goods.

The request from a customs or tax authority for copies of documents must include information regarding the substance of the alleged violation of foreign exchange legislation, referencing the applicable regulatory legal act. It must also contain sufficient information known to the respective authority to identify the specific foreign exchange operation (alleged violation) and the resident, along with a deadline for fulfilling the request, which cannot be less than 7 business days following the date of receipt of the request.

The FCS provides authorized banks, upon their request, with information regarding the compliance (or non-compliance) of data contained in customs goods declarations submitted by residents to the authorized bank with the information on customs operations pertaining to the goods available to the customs authorities. The timeframe for executing the request cannot exceed 14 business days following the date of receipt of the request.

The FTS provides authorized banks, upon their request, with information confirming whether the tax authority at the resident's place of registration was notified of the opening of an account (deposit) in a bank and (or) another financial market organization located outside the territory of the Russian Federation. The timeframe for executing the request cannot exceed 14 business days following the date of receipt of the request.

The submission and transfer of documents and information by foreign exchange control agents to customs and tax authorities, and by customs and tax authorities to foreign exchange control agents, do not constitute a breach of commercial, banking, tax, or any other legally protected secrets.

According to the position of the Plenum of the Supreme Court of the Russian Federation, outlined in Item 8 of Resolution No. 49 dated November 26, 2019,[2] considering the public nature of customs legal relations, when assessing a declarant's compliance with the requirements of the Customs Code of the EAEU, courts should proceed from the presumption of the accuracy of the information (documents, data) provided by the declarant during customs control, placing the burden of refutation upon the customs authority.

Framework for Interagency Cooperation Between the FTS and FCS During Foreign Exchange Audits

The Agreement Between the FTS and FCS dated December 3, 2025,[3] states that its objective is to organize the exchange of information from the databases of customs and tax authorities and facilitate the prompt exchange of information regarding matters related to the performance of the duties and functions assigned to the parties. The Agreement became effective on December 3, 2025.

The FCS and FTS exchange information and coordinate their activities in the following areas:

Ensuring oversight of the activities of foreign trade participants through prompt information exchange, the coordination of audits, and the development of joint departmental regulatory legal acts for auditing foreign trade participants, entities engaged in customs affairs, entities conducting wholesale or retail trade in imported and (or) exported goods, and other persons involved in subsequent operations with goods imported into the Russian Federation;
Formulating and implementing proposals to refine the system of measures ensuring compliance with EAEU law, customs, foreign exchange, tax, and other legislation of the Russian Federation under the purview of customs and tax authorities, aimed at preventing, detecting, and suppressing crimes and administrative offenses in the customs, tax, and other spheres;
Securing the collection of customs payments, special, antidumping, and countervailing duties, interest, and penalties, as well as other mandatory payments (administrative fines and criminal fines);
Standardizing the data utilized during customs, tax, and foreign exchange control measures, and developing and implementing joint technological solutions for information exchange and protection;
Developing new information technologies aimed at integrating the information resources of the FCS and FTS.

The FCS and FTS interact electronically via the Unified System of Interdepartmental Electronic Interaction (the "SMEV"), conducting both scheduled (within established timeframes) and prompt information exchanges.

The FCS routinely provides the following data:

Information from the databases of electronic copies of goods declarations, including those executed in other EAEU member states;
Data from statistical forms tracking the cross-border movement of goods;
Details concerning the export date, quantity, and value (if available) of goods actually exported under the export customs procedure, as well as goods exported as supplies outside the EAEU customs territory;
Information regarding the import date and quantity of goods (supplies) actually imported into the EAEU customs territory (for agreed items);
Records of administrative offense cases initiated by customs authorities regarding violations of the Russian Federation's foreign exchange legislation and acts of foreign exchange regulation authorities, including the results of their consideration, the entry into force of adopted decisions, and their enforcement (for agreed items, subject to technical feasibility);
Data on ongoing customs audits and their outcomes;
Information regarding declarants who paid customs duties, taxes, special, antidumping, and countervailing duties over the three calendar years preceding the year the information is transmitted;
Assessments of high and low customs risk levels for entities conducting foreign trade operations;
Information on inaccurate customs declarations of goods upon import into the territory of the Russian Federation (for agreed items) and other data.

Customs authorities promptly provide tax authorities with:

The outcomes of verification measures conducted by customs authorities based on information transferred by tax authorities;
Data regarding legal entities exhibiting signs of inactive status, obtained as a result of verification measures conducted by customs authorities;
Information concerning identified discrepancies between the data included in the Unified State Register of Legal Entities and the information obtained during the execution of functions assigned to customs authorities;
The results of completed customs audits;
Information regarding violations identified during customs control with respect to declared goods, excluding goods for personal use.

In turn, the FTS routinely transmits to the FCS:

A list of taxpayer organizations that have failed to submit tax declarations (calculations) for two or more reporting periods;
Records of administrative offense cases initiated by tax authorities regarding violations of foreign exchange legislation, including data on the results of their consideration, the entry into force of decisions, and their enforcement (for agreed items, subject to technical feasibility);
Information regarding the amounts of indirect taxes paid into the budgets of EAEU member states and tax incentives (exemptions from taxation) in the form of registers of applications for the import of goods and payment of indirect taxes;
Data on ongoing tax audits (for agreed items);
Information concerning taxpayers with high, medium, and low tax risk levels engaged in foreign trade operations;
Details of the aggregate amount of federal tax obligations fulfilled by declarants over the three calendar years preceding the year the data is sent, and other information.

Tax authorities promptly provide customs authorities with:

Information regarding violations of the law concerning goods and vehicles released for free circulation (conditionally released) within the EAEU customs territory with customs payment benefits and introduced into commerce within the Russian Federation;
Data regarding discrepancies between the name, quantity, and (or) value at which the importer recorded the good in accounting, and the data on the name, quantity, price, and (or) currency and total invoice amount declared in the customs declaration;
Information on violations of foreign exchange legislation by foreign trade participants, the control over which is entrusted to customs authorities;
The outcomes of tax control measures conducted by tax authorities based on information provided by customs authorities;
Information regarding legally binding court decisions on applications by tax authorities to invalidate the state registration and liquidate taxpayer organizations based on facts identified by customs authorities;
Information concerning identified violations of the legislation of the Russian Federation on taxes and fees regarding the payment of customs and other charges by customs representatives on behalf of declarants;
Details of discrepancies identified during tax control measures between the commodity codes specified by foreign trade participants in customs declaration documents and the actual commodity codes under the EAEU TN VED, along with other information.

Requests from either agency must be accepted for execution immediately upon receipt and fulfilled within 20 calendar days.

The FCS and FTS shall take the necessary measures to protect the information they provide to each other from unlawful dissemination, particularly when it affects the interests of third parties and constitutes commercial, tax, or banking secrets.

Procedures for Foreign Exchange Control Audits Conducted by Tax Inspectorates

The procedure by which the FTS of Russia authorities exercise control and supervision over compliance by residents (excluding credit institutions and non-credit financial institutions stipulated by Federal Law No. 86-FZ dated July 10, 2002, On the Central Bank of the Russian Federation (Bank of Russia)) and non-residents with the foreign exchange legislation of the Russian Federation and the requirements of acts issued by foreign exchange regulation and control authorities (excluding control over foreign exchange operations related to the cross-border movement of goods within the EAEU, and their import and export from the Russian Federation), as well as compliance of foreign exchange operations (not related to moving goods across the EAEU border or their import/export) with the terms of licenses and permits, and compliance by residents (other than authorized banks) with the obligation to notify tax authorities at their place of registration about opening, closing, or changing details of accounts (deposits) in foreign banks and submitting cash flow reports for such accounts, is set forth in the Administrative Regulations approved by Order of the FTS of Russia No. MMV-7-17/418@ dated August 26, 2019 (the "FTS Administrative Regulations").

It should be noted that the format of the report on the movement of funds and other financial assets of resident legal entities and individual entrepreneurs across accounts (deposits) in banks and other financial market organizations, as well as on money transfers without opening a bank account using electronic means of payment provided by foreign payment service providers, and the rules for their submission, were approved by Decree of the Government of the Russian Federation No. 819 dated December 28, 2005 (the "Rules No. 819").

Legal entities and individual entrepreneurs must submit a report and documents (statements or other documents issued by a bank or a foreign payment service provider in accordance with the laws of the jurisdiction where the bank, financial market organization, or foreign payment service provider is registered) to the tax authority on a quarterly basis, within 30 business days following the end of the reporting quarter. These documents confirm the information specified in the report as of the last calendar date of the reporting quarter. A separate report with supporting documents must be submitted for each account (deposit).

The report on money transfers without opening a bank account using electronic means of payment is submitted within 30 business days following the end of the reporting quarter in which the amount of funds credited to the electronic means of payment exceeds the equivalent of 600,000 rubles (or the equivalent in foreign currency) starting from the first day of the reporting year. In this scenario, the report for such electronic means of payment and supporting documents are provided for the period from the beginning of the reporting year (or from the date the right to use the electronic means of payment was acquired) up to the last date of the reporting quarter when the excess occurred. In subsequent reporting quarters, the report is submitted for the period from the first to the last day of the reporting quarter, regardless of the amount of funds credited to the electronic means of payment in that specific quarter.

Notably, for individual entrepreneurs mobilized under Decree of the President of Russia No. 647 dated September 21, 2022, an extension of the deadline for submitting such reports is provided.[4]

If the report is completed incorrectly or incompletely, or if the supporting documents are improperly executed or absent entirely, the tax authority will formally notify the resident in writing of the need to make corrections. This notification may be served personally to the legal entity's representative or the individual entrepreneur (or their representative), sent by registered mail with return receipt requested, or transmitted electronically. The deadline to submit the corrected report and (or) the properly executed supporting documents to the tax authority is 10 business days from the date of receipt of the notification.

The Rules No. 819 do not establish a timeframe within which the tax authority must review the submitted report, nor do they prescribe a deadline for notifying the resident to submit a corrected (revised) report after receiving it.

The statutory period for exercising control and supervision over compliance with foreign exchange legislation is 485 business days (Item 16 of the FTS Administrative Regulations). The grounds for initiating the administrative procedure to audit documents submitted by a resident in accordance with the Rules No. 819 is the receipt of documents and (or) information indicating signs of foreign exchange legislation violations (Item 18 of the FTS Administrative Regulations).

The administrative procedure for scheduling an audit entails conducting a pre-audit analysis and preparing an instruction to initiate an audit (or a memorandum advising against the audit) within a period not exceeding 30 business days from the date the documents and (or) information are received (Item 19 of the FTS Administrative Regulations).

Consequently, if the tax authority identifies signs of foreign exchange violations within this period and decides to proceed with the audit, it will issue a corresponding instruction, and the audit must be conducted within a timeframe not exceeding 67 business days (Item 29 of the FTS Administrative Regulations).

The maximum timeframe for the administrative action of conducting an audit, including a 60-business-day extension and a 190-business-day suspension, cannot exceed 317 business days (Item 30 of the FTS Administrative Regulations).

Residents are required to submit reports to the tax authorities at their place of registration regarding the movement of funds and other financial assets in accounts (deposits) held at banks and other financial market organizations located outside the Russian Federation. They must also report on money transfers without opening a bank account via electronic means of payment provided by foreign payment service providers, accompanied by supporting documents in accordance with Article 12 of the Federal Law No. 173-FZ.

Customs Procedures for Foreign Exchange Control and Verification

By comparison, customs authorities exercise foreign exchange control in accordance with the procedure established by the Administrative Regulations approved by Order of the FCS of Russia No. 1171 dated July 17, 2019 (the "FCS Regulations").

The aggregate timeframe for executing administrative procedures may not exceed 247 business days (Item 22 of the FCS Regulations). The duration of the audit itself cannot exceed 45 business days from its commencement, and even with extensions, it may not exceed 145 business days (Item 46 of the FCS Regulations), which constitutes a substantial period. Upon concluding the audit, the customs authority has the power to issue an order demanding the remediation of identified foreign exchange legislation violations, with a compliance deadline ranging from 10 to 30 business days following the auditee's receipt of the order.

The format of the report on the movement of funds and other financial assets of a resident individual across an account (deposit) in a bank and other financial market organization, as well as on money transfers without opening a bank account using electronic means of payment provided by foreign payment service providers, and the rules for their submission, were approved by Decree of the Government of the Russian Federation No. 1365 dated December 12, 2015 (the "Rules No. 1365").

A resident individual is exempt from filing a report on the movement of funds and other financial assets for their account (deposit) with the tax authorities if the bank or financial market organization is located within an EAEU member state or a jurisdiction that engages in automatic financial information exchange. This exemption applies provided that the total amount credited to or debited from the account (deposit) during the reporting year does not exceed 600,000 rubles (or its foreign currency equivalent), or the closing balance at the end of the reporting year does not exceed 600,000 rubles (or its foreign currency equivalent) if no funds were credited to the account during the reporting year.

A resident is not required to submit a report to the tax authorities on money transfers without opening a bank account using electronic means of payment provided that the total amount credited to the specified electronic means of payment over the reporting year does not exceed the equivalent of 600,000 rubles in domestic or foreign currency.

For the purposes of applying the Rules No. 1365, the reporting year aligns with the calendar year. Generally, this report must be submitted to the tax authority before June 1 of the year following the reporting year. The deadlines for submitting this report are extended for individuals mobilized pursuant to Decree of the President of the Russian Federation No. 647 dated September 21, 2022.[5]

Individuals can generate and submit a report on money transfers without opening a bank account via electronic means of payment through their personal taxpayer accounts. However, if an electronic wallet was opened with a foreign payment service provider, the report is mandatory if more than 600,000 rubles (or the foreign currency equivalent) was credited to this wallet during the reporting year.

To implement foreign exchange control, the tax authority, within its competence, is authorized to request and obtain from an individual supporting documents (copies of documents) and information related to foreign exchange operations and the opening and maintaining of accounts (deposits). Supporting documents and information are submitted to the tax authority in accordance with the procedure set forth in the Rules approved by Decree of the Government of the Russian Federation No. 98 dated February 17, 2007 (the "Rules No. 98"), which mandate that the required timeframe for submitting documents cannot be less than 7 business days.

Upon identifying inaccurate data (errors, imprecise information) or incomplete report submissions, the tax authority will issue a notification to the resident demanding a corrected (revised) report. The corrected (revised) report must be submitted to the tax authority within the timeframe specified in the notification, which cannot be less than 7 business days from the date the tax authority's notification is received (the “Rules No. 1365”).

Notably, the Rules No. 1365 also do not specify the timeframe within which the tax authority must review the report submitted by the resident.

In this scenario, one should refer to the timelines outlined in the Administrative Regulations. As noted above, the tax authority receiving the resident's report conducts an audit of the report within 30 business days from its receipt. Should violations be identified, subsequent measures will be implemented in accordance with the timelines established by the Administrative Regulations.

Administrative and Financial Penalties for Foreign Exchange Legislation Violations

It is critical to emphasize that foreign exchange violations are not exclusively linked to foreign trade activities. A company or individual can violate foreign exchange laws without interacting with foreign counterparties or actively conducting business, leading to severe consequences ranging from substantial fines to corporate liquidation or the inability to recover a debt. Nevertheless, a portion of the liability can be mitigated or avoided by demonstrating good faith and compliance with statutory requirements.

Article 15.25 of the Code of Administrative Offenses of the Russian Federation (the "CAO RF") establishes liability for a resident's failure to submit a report to the tax authority regarding money transfers without opening a bank account using electronic means of payment provided by foreign payment service providers, when the submission of such a report is mandatory (Part 1.1 of Article 15.25 of the CAO RF). The fine imposed on citizens, corporate officers, and legal entities ranges from 20% to 40% of the funds credited to the electronic means of payment provided by the foreign payment service provider during the reporting period.

The submission by a resident to the tax authority of a notification regarding the opening (closing) of an account (deposit) or a change in account (deposit) details in violation of the prescribed deadline and (or) form entails an administrative fine:

for citizens – from 1,000 to 1,500 rubles;
for corporate officers – from 5,000 to 10,000 rubles;
for legal entities – from 50,000 to 100,000 rubles.

The failure by a resident to submit a notification to the tax authority regarding the opening (closing) of an account (deposit) or a change in account (deposit) details results in an administrative fine:

for citizens – from 4,000 to 5,000 rubles;
for corporate officers – from 40,000 to 50,000 rubles;
for legal entities – from 800,000 to 1,000,000 rubles.

Non-compliance with the established procedure for submitting reports on the movement of funds in accounts (deposits) with banks and other financial market organizations, or regarding money transfers without opening a bank account using electronic means of payment provided by foreign payment service providers, and (or) the failure to submit supporting documents, leads to an administrative fine:

for citizens – from 2,000 to 3,000 rubles;
for corporate officers – from 4,000 to 5,000 rubles;
for legal entities – from 40,000 to 50,000 rubles.

Under Part 2 of Article 15.25 of the CAO RF, a resident's submission to the tax authority of a notification regarding the opening (closing) of an account (deposit) or a change in account (deposit) details in a bank and other financial market organization located outside the territory of the Russian Federation in violation of the prescribed deadline and (or) form incurs an administrative fine:

for citizens – from 1,000 to 1,500 rubles;
for corporate officers – from 5,000 to 10,000 rubles;
for legal entities – from 50,000 to 100,000 rubles.

The failure by a resident to submit a notification to the tax authority regarding the opening (closing) of an account (deposit) or a change in account (deposit) details in a bank and other financial market organization located outside the territory of the Russian Federation attracts an administrative fine (Part 2.1 of Article 15.25 of the CAO RF):

for citizens – from 4,000 to 5,000 rubles;
for corporate officers – from 40,000 to 50,000 rubles;
for legal entities – from 800,000 to 1,000,000 rubles.

Liability is also imposed for a resident's failure to fulfill the obligation, within the prescribed timeframe, to receive foreign currency and (or) currency of the Russian Federation in their bank accounts with authorized banks, representing payment due for goods transferred to non-residents, works performed for non-residents, services rendered to non-residents, or information or intellectual property results (including exclusive rights thereto) transferred to non-residents, or a resident's failure to secure the receipt of foreign currency or currency of the Russian Federation owed by a non-resident under a loan agreement. Such violations trigger a warning or an administrative fine (Part 4 of Article 15.25 of the CAO RF).

For citizens, individual entrepreneurs, and legal entities, the penalty is assessed at 1/150 of the key rate of the Bank of Russia applied to the funds credited to accounts in authorized banks in breach of the deadline, calculated for each day of delay, and (or) an amount ranging:

from 3% to 5% of the funds not credited to the authorized bank accounts in a timely manner, provided the foreign trade agreement (contract) with the non-resident stipulates obligations and payments in rubles, excluding foreign trade agreements (contracts) involving the transfer of goods classified under TN VED codes 4401 - 4403 99 000 9 and 4407;
from 3% to 10% of the funds not credited to the authorized bank accounts in a timely manner if the foreign trade agreement (contract) with the non-resident involves goods classified under TN VED codes 4401 - 4403 99 000 9 and 4407 and stipulates obligations and payments in rubles;
from 5% to 30% of the belatedly credited funds if the foreign trade agreement (contract) stipulates payment in foreign currency; and from 5% to 30% of the belatedly credited funds under a loan agreement with a non-resident.

For corporate officers, the penalty is 1/150 of the key rate of the Bank of Russia applied to the funds credited to accounts in authorized banks in breach of the deadline, calculated for each day of delay, and (or):

from 3% to 5% of the funds not credited in a timely manner to authorized bank accounts under a foreign trade agreement (contract) with a non-resident;
from 5% to 30% of the funds not credited in a timely manner to authorized bank accounts under a loan agreement with a non-resident, capped at 30,000 rubles.

This obligation and its compliance deadline are mandated by Part 1 of Article 19 of the Federal Law No. 173-FZ. Concurrently, an exhaustive list defines the circumstances under which residents are exempt from crediting foreign currency or Russian Federation currency to their authorized bank accounts (Part 2 of Article 19 of the Federal Law No. 173-FZ). It is critical to recognize that under special economic measures implemented since March 1, 2022, providing foreign currency to non-residents under loan agreements is generally prohibited (though since July 1, 2022, resident individuals are permitted to provide foreign currency under loan agreements, subject to certain conditions). Furthermore, since March 2, 2022, a special procedure governs transactions (operations) for providing credits and loans (in rubles) to foreign persons associated with foreign states committing unfriendly actions (including entities controlled by such foreign persons). Additionally, since July 5, 2022, residents executing foreign trade agreements (contracts) with non-residents must fulfill foreign currency repatriation requirements in an amount no less than the sum of foreign currency subject to mandatory sale (which was set to 0% on June 10, 2022).[6]

The administrative liability prescribed by Parts 1 and 4 of Article 15.25 of the CAO RF does not apply to a resident who, within the statutory timeframes, credited the funds to an account (deposit) held in a foreign bank and subsequently debited and fully transferred those funds to their account (deposit) in an authorized bank within 45 days of the initial credit to the foreign bank account. In cases of partial transfer to the authorized bank account within the 45-day window, the administrative liability stipulated in Note 7 to Article 15.25 of the CAO RF does not apply to the partially credited amount (Note 7 to Article 15.25 of the CAO RF).

The administrative liability established by Part 4 of Article 15.25 of the CAO RF is not applicable to a resident engaged in a foreign trade agreement (contract) with a non-resident if the contractual obligations amount to or do not exceed 200,000 rubles, or the equivalent of 200,000 rubles in foreign currency (Note 8 to Article 15.25 of the CAO RF).

Liability under Part 4.1 of Article 15.25 of the CAO RF arises when a resident fails to secure the timely receipt of rubles on their accounts in authorized banks or foreign accounts in the proportion mandated by the Government for foreign trade contracts.

This offense results in a warning or the imposition of an administrative fine:

for persons conducting business activities without forming a legal entity and for legal entities – from 40,000 to 50,000 rubles;
for corporate officers – from 20,000 to 30,000 rubles.

The untimely fulfillment or termination by a resident of obligations under a foreign trade contract with a non-resident governed by foreign exchange legislation and the regulations of foreign exchange control authorities, utilizing lawful methods (excluding cases specified in Parts 4 and 4.1 of Article 15.25 of the CAO RF), entails a warning or an administrative fine (Part 4.3 of Article 15.25 of the CAO RF):

for individual entrepreneurs and legal entities – from 5% to 30% of the funds owed to the resident by the non-resident;
for corporate officers – from 3% to 5% of the funds owed to the resident by the non-resident, capped at 30,000 rubles.

Generally, residents must ensure the repatriation to Russia of funds paid to non-residents for goods not imported into the Russian Federation (not received in the Russian Federation), unperformed works, unrendered services, or non-transferred information and intellectual property results (including exclusive rights thereto) (Clause 2 of Part 1 of Article 19 of the Federal Law No. 173-FZ).

Violation of this obligation leads to a warning or an administrative fine under Part 5 of Article 15.25 of the CAO RF:

for individual entrepreneurs and legal entities, the fine is 1/150 of the key rate of the Bank of Russia applied to the funds repatriated to the Russian Federation after the deadline for each day of delay, and (or) from 3% to 10% of the unreturned ruble funds paid to the non-resident under a ruble-denominated foreign trade contract, and (or) from 5% to 30% of the unreturned funds paid to the non-resident under a foreign-currency-denominated foreign trade contract;
for corporate officers, the penalty is 1/150 of the key rate of the Bank of Russia applied to the funds repatriated to the Russian Federation after the deadline for each day of delay, and (or) from 3% to 10% of the unreturned ruble funds paid to the non-resident under a ruble-denominated foreign trade agreement (contract), and (or) from 5% to 30% of the unreturned funds paid to the non-resident under a foreign-currency-denominated foreign trade agreement (contract), capped at 30,000 rubles.

A corporate officer who commits the administrative offenses outlined in Parts 1, 4, 4.1, 4.3, and 5 of Article 15.25 of the CAO RF after previously receiving an administrative fine for a similar offense faces disqualification for a term of 6 months to 3 years (Part 5.1 of Article 15.25 of the CAO RF).

The acts (or omissions) detailed in Parts 4, 4.1, 4.3, and 5 of Article 15.25 of the CAO RF incur an administrative fine under Part 5.2 of Article 15.25 of the CAO RF if the amount of foreign currency or rubles credited late or not credited at all to authorized bank accounts and (or) foreign bank accounts under a foreign trade agreement (contract) or loan agreement with a non-resident exceeds 100,000,000 rubles for single or multiple foreign exchange operations within one year, provided these actions do not constitute a criminal offense. The penalties are:

for individual entrepreneurs and legal entities, 1/150 of the key rate of the Bank of Russia applied to the funds credited late to authorized bank accounts and (or) foreign bank accounts for each day of delay, and (or) from 75% to 100% of the funds not credited to the authorized bank accounts and (or) foreign bank accounts;
for corporate officers, from 40,000 to 50,000 rubles, or disqualification for 6 months to 3 years.

The administrative liability set forth in Parts 4, 4.1, 4.3, 5, and 5.2 of Article 15.25 of the CAO RF takes effect 45 days after the expiration of the deadline for fulfilling the relevant obligation, assuming non-compliance persists throughout this period (Note 9 to Article 15.25 of the CAO RF).

It is important to note that the administrative liability established by Parts 1, 4, 4.1, 4.3, 5, and 5.2 of Article 15.25 of the CAO RF for legal relations arising between February 23, 2022, and December 31, 2023, does not apply to a resident if the failure to comply with foreign exchange legislation stems from restrictive measures imposed on Russian citizens or legal entities by foreign states (territories), state associations, and (or) unions, or by foreign state (interstate) institutions engaging in unfriendly actions against the Russian Federation (Note 10 to Article 15.25 of the CAO RF).

Concurrently, failure to fulfill the repatriation requirements set out in Parts 1 and 2 of Article 19 of the Law on Foreign Exchange Regulation does not constitute the event of an administrative offense as defined in Parts 4, 4.1, 4.3, and 5 of Article 15.25 of the CAO RF. Proceedings for an administrative offense cannot be initiated, and any ongoing proceedings must be terminated if the event of the administrative offense is absent (Clause 1 of Part 1 of Article 24.5 of the CAO RF).

Part 6 of Article 15.25 of the CAO RF imposes liability for:

non-compliance with the procedure for submitting reports on the movement of funds in accounts (deposits) with banks and other financial market organizations located outside the Russian Federation, or reports on money transfers without opening a bank account using electronic means of payment provided by foreign payment service providers, and (or) failure to provide supporting documents;
violating statutory retention periods for accounting and reporting records regarding foreign exchange operations, supporting documents, and information related to foreign exchange operations;
failure of a resident financial agent (factor) assigned a monetary claim (including via subsequent assignment) to notify the resident – who, under a foreign trade agreement (contract) with a non-resident, is the party transferring goods, performing works, rendering services, or transferring information or intellectual property results (including exclusive rights thereto) to that non-resident – in a timely manner regarding the non-resident's performance (or non-performance) of obligations under said agreement or regarding the subsequent assignment of the monetary claim, accompanied by relevant documents.

These violations incur an administrative fine:

for citizens – from 2,000 to 3,000 rubles;
for corporate officers – from 4,000 to 5,000 rubles;
for legal entities – from 40,000 to 50,000 rubles.

Liability also applies for violating the established deadlines for submitting accounting and reporting forms for foreign exchange operations, supporting documents, and related information, or deadlines for submitting reports on the movement of funds in foreign bank accounts (deposits) or money transfers via foreign electronic payment systems, along with supporting documents (Parts 6.1 – 6.3-1 of Article 15.25 of the CAO RF).

Please note that the fine stipulated in Parts 6.1 – 6.3-1 of Article 15.25 of the CAO RF escalates based on the duration of the delay, calculated in business days.

A repeat commission of the administrative offense detailed in Part 6 of Article 15.25 of the CAO RF – excluding repeat offenses involving non-compliance with the reporting procedure for the movement of funds in foreign accounts or money transfers via foreign electronic payment systems and (or) the submission of supporting documents – attracts liability under Part 6.4 of Article 15.25 of the CAO RF in the form of an administrative fine:

for citizens – 10,000 rubles;
for corporate officers – from 12,000 to 15,000 rubles;
for legal entities – from 120,000 to 150,000 rubles.

A repeat commission of an administrative offense involving non-compliance with the established procedure for submitting reports on the movement of funds in foreign accounts or money transfers via foreign electronic payment systems and (or) supporting documents is isolated in Part 6.5 of Article 15.25 of the CAO RF.

The penalty imposes an administrative fine:

for citizens – 20,000 rubles;
for corporate officers – from 30,000 to 40,000 rubles;
for legal entities – from 400,000 to 600,000 rubles.

In Case No. A14-15544/2023, initiated by a company petitioning against the FTS to challenge a resolution imposing administrative liability under Part 6 of Article 15.25 of the CAO RF and an administrative fine of 40,000 rubles, the company filed an electronic report to the tax authority regarding the movement of funds in a foreign bank account (deposit). The company submitted the account statement in a separate file. Because the report and statement were in separate files, the tax authority rejected the statements, deeming the documents unsubmitted.

The FTS argued that the legislative mandate for a resident to submit reports on the movement of funds in foreign accounts alongside supporting documents inherently required the supporting documents (account statements) to be submitted concurrently with the report (in a single file).

However, the courts ruled that "the transmittal documents for the supporting documents referenced the underlying files to which the supporting documents corresponded, and given that the submitted cash flow reports were accepted and registered by the tax authority, the tax authority possessed the capability to cross-reference the cash flow reports with the almost simultaneously submitted supporting documents. The tax authority provided no evidence demonstrating an inability to correlate the contents of the submitted files". Furthermore, "Decree of the Government of the Russian Federation No. 819 dated December 28, 2005, which approves the rules for residents submitting reports on the movement of funds in foreign bank accounts, does not contain mandatory requirements for submitting the report and supporting documents in a single (unified) file when providing these documents electronically".[7]

In Case No. 7-12255/2025, the courts upheld a fine for the repeated violation of the procedure for submitting reports on the movement of funds in a foreign bank account. The petitioner argued they were not obligated to submit cash flow reports for foreign accounts since their cumulative time spent outside the Russian Federation during the 2021 calendar year exceeded 183 days. The court rejected this argument because the petitioner failed to present corroborating evidence.

Upon evaluating the submitted copies of passports, a residence permit, and an employment certificate, the FTS official and the courts legitimately concluded that the document copies did not establish their true content and therefore could not be deemed admissible evidence. A residence permit solely confirms the right to reside in a specific country; an employment certificate did not substantiate actual residence outside the Russian Federation; and passport copies did not confirm the loss of residency status, as they did not preclude border crossings with nations lacking border control. The FTS repeatedly advised the petitioner that "evidence of a resident individual's presence outside the Russian Federation may include: certificates from the General Administration for Migration Issues of the Ministry of Internal Affairs of Russia detailing border crossings, documents from competent foreign authorities verifying actual presence in a specific location abroad, foreign residential lease agreements, documents substantiating expenses (bank statements), vehicle lease agreements, and similar records. However, no such documents were presented".[8]

Case No. A40-48372/2024 involved an application to invalidate an FTS demand for documents and information. The petitioner argued that "the requested documents do not fall within the scope outlined in Part 4 of Article 23 of the Federal Law No. 173-FZ, as a primary condition for requesting documents is their direct relevance to a specific foreign exchange operation". The court dismissed this argument, noting that "to execute foreign exchange control, tax authorities and their officials, within their competence, are empowered to request and obtain documents (copies of documents) connected to the execution of foreign exchange operations. The documents (copies of documents) requested from the Company are connected to the execution of foreign exchange operations". Additionally, the petitioner failed to demonstrate how the issuance of the contested demand for documents and information infringed upon its rights and legitimate interests.[9]

Assessing Criminal Liability Risks Arising from Foreign Exchange Audits

Criminal liability applies to the evasion of obligations to repatriate funds in foreign currency or currency of the Russian Federation on a large scale if the offense is committed by a person previously subjected to administrative penalties for acts defined in Part 5.2 of Article 15.25 of the CAO RF (Article 193 of the Criminal Code of the Russian Federation).

Acts are deemed to be committed on a large scale if the amount of uncredited or unreturned funds in foreign currency or currency of the Russian Federation for single or multiple foreign exchange operations over a one-year period exceeds 100 million rubles, and on an especially large scale if it exceeds 150 million rubles.

This crime is punishable by a fine ranging from 200,000 to 500,000 rubles or the equivalent of the convicted person's salary or other income for a period of 1 to 3 years, or by forced labor for up to 3 years, or by imprisonment for up to 3 years.

Violations involving the failure to credit large-scale funds from one or more non-residents to a resident's accounts in authorized banks or foreign banks, or the failure to repatriate large-scale funds paid to one or more non-residents for unimported goods, unperformed works, unrendered services, or non-transferred information and intellectual property results (including exclusive rights), which are committed:

on an especially large scale;
by a group of persons acting in prior collusion or by an organized group;
using a knowingly forged document;
utilizing a legal entity established to commit one or more crimes involving financial operations and other transactions with funds or other property,

are punishable by imprisonment for up to 5 years, with or without a fine of up to 1,000,000 rubles or the equivalent of the convicted person's salary or other income for up to 5 years (Part 2 of Article 193 of the Criminal Code of the Russian Federation).

Currently, because the requirements of Parts 1 and 2 of Article 19 of the Federal Law No. 173-FZ do not apply to foreign trade activities and (or) the provision and repayment of loans by Russian legal entities and individual entrepreneurs (Decree of the President of Russia No. 529 dated August 8, 2022), failure to meet these requirements does not constitute a criminal event penalized under Article 193 of the Criminal Code of the Russian Federation. A criminal case cannot be initiated, and an initiated criminal case is subject to termination in the absence of a criminal event (Clause 1 of Part 1 of Article 24 of the Criminal Procedure Code of the Russian Federation).

Article 193.1 of the Criminal Code of the Russian Federation imposes liability for executing foreign exchange operations involving the transfer of funds in foreign currency or currency of the Russian Federation to non-resident accounts using forged documents.

Executing foreign exchange operations to transfer funds in foreign currency or rubles to the bank accounts of one or more non-residents while submitting documents related to these operations to a credit institution acting as a foreign exchange control agent that contain knowingly false information regarding the grounds, purposes, and designation of the transfer, is punishable by a fine ranging from 200,000 to 500,000 rubles, or the equivalent of the convicted person's salary or other income for 1 to 3 years, or by forced labor for up to 3 years, or imprisonment for up to 3 years (Part 1 of Article 193.1 of the Criminal Code of the Russian Federation).

The act detailed in Part 1 of Article 193.1 of the Criminal Code of the Russian Federation is punishable by imprisonment for up to 5 years, with or without a fine of up to 1,000,000 rubles or the equivalent of the convicted person's salary or other income for up to 5 years (Part 2 of Article 193.1 of the Criminal Code of the Russian Federation) if committed:

on a large scale;
by a group of persons acting in prior collusion;
utilizing a legal entity established to commit one or more crimes involving financial operations and other transactions with funds or other property.

The acts described in Part 1 or Part 2 of Article 193.1 of the Criminal Code of the Russian Federation, when committed:

on an especially large scale;
by an organized group,

are punishable by imprisonment for a term of 5 to 10 years, with or without a fine of up to 1,000,000 rubles or the equivalent of the convicted person's salary or other income for up to 5 years (Part 3 of Article 193.1 of the Criminal Code of the Russian Federation).

Acts falling under Article 193.1 of the Criminal Code of the Russian Federation are deemed committed on a large scale if the unlawfully transferred funds in foreign currency or rubles for single or multiple foreign exchange operations over one year exceed 13,500,000 rubles, and on an especially large scale if they exceed 65,000,000 rubles (Note to Article 193.1 of the Criminal Code of the Russian Federation).

The statute of limitations for criminal prosecution for offenses under Part 1 of Article 193 and Part 1 of Article 193.1 of the Criminal Code of the Russian Federation is 2 years following the commission of the crime; for offenses under Part 2 of Article 193 and Part 2 of Article 193.1 of the Criminal Code of the Russian Federation, it is 6 years; and for offenses under Part 3 of Article 193.1 of the Criminal Code of the Russian Federation, it is 10 years following the commission of the crime.

Pre-Trial Appeal Mechanisms for FTS Foreign Exchange Audits

The procedure for appealing the decisions, actions (or inactions) of a customs authority and its officials is governed by Chapter 51 of Federal Law No. 289.

An appeal is filed with the superior customs authority via the customs authority whose decision, action (or inaction) is being challenged. The customs authority subject to the appeal forwards the appeal, along with its opinion and the documents required to reach a decision, to the superior customs authority no later than 5 business days following its receipt (Article 288 of Federal Law No. 289).

The appeal may be filed within 3 months:

from the date the person became aware, or should have become aware, of the infringement of their rights, freedoms, or legitimate interests, the creation of obstacles to their realization, or the unlawful imposition of an obligation;
from the expiration of the deadline for the customs authority to adopt a decision or perform an action.

This deadline may be reinstated upon the applicant's motion if the customs authority deems the reason for the delay valid. The motion to reinstate the deadline must be submitted in writing as an independent document alongside the appeal or incorporated directly into the text of the appeal (Article 289 of Federal Law No. 289).

The appeal is submitted to the customs authority in written or electronic form and must contain (Article 290 of Federal Law No. 289):

The superior customs authority must review the appeal within 1 month of its receipt by the customs authority authorized to adjudicate the appeal. The head of this customs authority or an authorized official may extend the review period, but by no more than 1 month (Article 297 of Federal Law No. 289).

Based on the review of the appeal, the customs authority either (a) upholds the challenged decision, action (or inaction) as lawful and dismisses the appeal, or (b) recognizes the challenged decision, action (or inaction) as wholly or partially unlawful and adopts a decision to satisfy the appeal in whole or in part.

Pre-Trial Appeals Framework in the Customs Sphere (FCS Regulations)

Section V of the FCS Administrative Regulations (Order of the FCS of Russia No. 1171 dated July 17, 2019) establishes an exhaustive list of grounds under which a customs authority refuses to review an appeal on its merits (Item 113):

the existence of a prior decision on the same subject matter;
the expiration of the appeal deadline without a motion for its reinstatement (or the rejection of such motion); the adjudication of the same subject matter by a court;
the filing of the appeal by a party whose rights are unaffected;
the absence of an appeal subject matter;
failure to comply with the statutory form and content requirements for the appeal (Parts 1 and 3 of Article 290 of Federal Law No. 289-FZ dated August 3, 2018);
failure to provide documentation evidencing representative authority.

The timeframe for reviewing the appeal is suspended if a request for materially significant documents is issued to the applicant, up to a maximum of 3 months. In the event of non-submission, a decision is reached without considering the uncorroborated arguments (Item 118 of the FCS Regulations). A refusal to review an appeal precludes its subsequent resubmission on the same subject matter (Item 117 of the FCS Regulations); therefore, the initial appeal must be meticulously prepared in adherence to all formal requirements.

Regarding FTS audit acts, in accordance with Article 138 of the Tax Code of the Russian Federation (the "Tax Code"), non-normative acts of tax authorities, as well as the actions or inactions of their officials, may be appealed to a superior tax authority and (or) to a court. Notably, non-normative acts of tax authorities, and the actions or inactions of their officials, can only be appealed in court following their appeal to a superior tax authority through the procedure mandated by Articles 138–140 of the Tax Code (mandatory pre-trial appeal procedure).

The appeal is filed with the superior tax authority through the tax authority whose non-normative acts, actions, or inactions are being challenged. This tax authority must forward the appeal, along with all case materials, to the superior tax authority within 3 days of its receipt. The appeal may be submitted to the superior tax authority within 1 year from the date the party learned or should have learned of the infringement of its rights (Article 139 of the Tax Code).

The tax authority issues a decision on the appeal within 15 days of its receipt. The head (or deputy head) of the tax authority may extend this timeframe to obtain necessary documents (information) from subordinate tax authorities or when the appellant submits additional documents, but by no more than 15 days (Article 140 of the Tax Code).

Based on the review of the appeal, the superior tax authority (Article 140 of the Tax Code):

dismisses the appeal;
cancels the non-normative act of the tax authority;
annuls the tax authority's decision in whole or in part;
revokes the tax authority's decision entirely and issues a new decision on the case;
determines the actions or inactions of the tax authorities' officials to be unlawful and issues a ruling on the merits.

Appealing Resolutions in Administrative Offense Cases

The procedure detailed above pertains to appealing the enforcement measures utilized by foreign exchange control authorities (orders, demands, actions, and inactions).

The resolution imposing administrative liability under Article 15.25 of the CAO RF is appealed through an independent procedure defined in Chapter 30 of the CAO RF. For this category, a pre-trial appeal is not mandatory: the individual may elect to file the appeal either with a superior authority (superior official) or directly with a court (Article 30.1 of the CAO RF). The appeal must be filed within ten days from the date the copy of the resolution is delivered or received (Part 1 of Article 30.3 of the CAO RF); a deadline missed due to valid reasons may be reinstated upon a motion (Part 2 of Article 30.3 of the CAO RF).

If the pre-trial procedure fails to yield results, the audited party is entitled to petition the arbitration court. Jurisdiction is determined by the location of the respective authority that issued the challenged decision or committed the inaction. This rule applies to organizations and individual entrepreneurs; appeals filed by citizens (individuals lacking individual entrepreneur status) regarding resolutions under Article 15.25 of the CAO RF are directed to a court of general jurisdiction (Chapter 30 of the CAO RF), rather than an arbitration court. In cases challenging resolutions, the application is filed at the applicant's discretion – either at their address (place of residence) or the address of the administrative authority (Part 1 of Article 208 of the APC RF).

Judicial Defense Strategies During Foreign Exchange Audits

The application will be adjudicated under Chapter 24 of the Arbitration Procedure Code of the Russian Federation (the "APC RF"). Part 4 of Article 198 of the APC RF sets a three-month deadline for filing the application. This timeframe is calculated from the day the violation became known. The court may reinstate a deadline missed for valid reasons.

The outlined procedure (Chapter 24 of the APC RF, three-month deadline) governs challenges against non-normative legal acts, decisions, and actions (inactions) of foreign exchange control authorities. This includes, for instance, demands for the submission of documents or orders to rectify violations; Case No. A40-48372/2024 was adjudicated under these rules. Appealing a resolution imposing administrative liability under Article 15.25 of the CAO RF follows a distinct procedure. For legal entities and individual entrepreneurs, the resolution is challenged in an arbitration court pursuant to the rules of § 2 of Chapter 25 of the APC RF (Articles 207–211), and the application must be filed within an expedited timeframe – ten days from the date of receipt of the resolution copy (Part 2 of Article 208 of the APC RF; Article 30.3 of the CAO RF); Case No. A14-15544/2023 proceeded under these rules. For citizens (individuals), the resolution is appealed to a court of general jurisdiction – specifically, a district court, with subsequent appeal to a superior court under Chapter 30 of the CAO RF, also within a ten-day period (Articles 30.1, 30.3, and 30.9 of the CAO RF); Case No. 7-12255/2025 followed this track (district court to Moscow City Court). Administrative offense cases under Article 15.25 of the CAO RF are reviewed by foreign exchange control authorities (Article 23.60 of the CAO RF); officials of foreign exchange control authorities and agents are authorized to draft the protocols (Clause 80 of Part 2 of Article 28.3 of the CAO RF).

The Procedural Arsenal for Defense in Foreign Exchange Control Enforcement

When challenging a resolution in an arbitration court, the burden of proving the circumstances forming the basis for administrative liability rests on the administrative authority that adopted the contested decision (Part 4 of Article 210 of the APC RF).

In challenges to non-normative acts, the burden of establishing their compliance with the law similarly lies with the authority (Part 5 of Article 200 of the APC RF). The court is not constrained by the applicant's arguments and examines the contested decision in its entirety, evaluating the authority's jurisdiction, adherence to procedural requirements for imposing liability, and the expiration of the statute of limitations (Parts 6 and 7 of Article 210 of the APC RF).

Upon the applicant's motion, the court is authorized to suspend the enforcement of the contested resolution (Part 3 of Article 208 of the APC RF); applications to challenge a resolution are exempt from state duty (Part 4 of Article 208 of the APC RF). The absence of an event or corpus delicti of an administrative offense constitutes an independent basis for terminating the proceedings and annulling the resolution (Clauses 1 and 2 of Part 1 of Article 24.5 of the CAO RF) – the court relied precisely on the absence of the event of the offense in Case No. A14-15544/2023.

The statute of limitations for liability under Article 15.25 of the CAO RF is 2 years (Part 1 of Article 4.5 of the CAO RF – specifically for foreign exchange legislation violations).

Article 2.9 of the CAO RF stipulates that if an administrative offense is deemed insignificant, the judge, authority, or official empowered to adjudicate the administrative offense case may discharge the offender from administrative liability and limit the sanction to an oral reprimand.

An insignificant administrative offense constitutes an action or inaction that, while formally encompassing the elements of an administrative offense, does not pose a substantial threat to protected public legal relations, given the nature of the offense, the offender's role, the extent of the harm, and the severity of the ensuing consequences.[10]

In the presence of exceptional circumstances tied to the nature of the administrative offense and its repercussions, as well as the character and financial standing of the individual facing administrative liability, the adjudicating judge, authority, or official may impose an administrative fine below the minimum threshold. This is applicable if the minimum administrative fine for citizens is no less than 10,000 rubles, and for corporate officers, no less than 50,000 rubles. Alternatively, they may apply the administrative fine stipulated by the relevant article or part of the article of the constituent entity's law on administrative offenses if the minimum fine for citizens is no less than 4,000 rubles, and for corporate officers, no less than 40,000 rubles (Part 2.2 of Article 4.1 of the CAO RF).

When exceptional circumstances exist regarding the nature of the administrative offense and its consequences, coupled with the property and financial status of the legal entity facing liability, the judge, authority, or official may impose a fine below the minimum threshold, provided the minimum administrative fine for legal entities is at least 100,000 rubles (Part 3.2 of Article 4.1 of the CAO RF).

Furthermore, for a first-time administrative offense identified during state control (supervision), if the corresponding article of the CAO RF does not prescribe a warning as an administrative penalty, the administrative fine is subject to mandatory replacement with a warning if the conditions in Part 2 of Article 3.4 of the CAO RF are met (Article 4.1.1 of the CAO RF). Specifically, a warning is applied to first-time administrative offenses absent any infliction of harm or threat of harm to human life and health, flora and fauna, the environment, cultural heritage sites (historical and cultural monuments) of the peoples of the Russian Federation, state security, or the threat of natural and man-made emergencies, and absent any property damage.

To ensure a robust defense during foreign exchange control by customs and tax authorities, it is recommended to:

Promptly and comprehensively submit mandatory reports, requested documents, and information to circumvent administrative liability;
Appeal the actions (inactions) of tax and customs authorities operating as foreign exchange control agents, as well as their officials, to a superior authority, a superior official, or a court.

The prevailing legal defense mechanisms facilitate the effective safeguarding of rights when adherence to established procedures is maintained and court applications are filed in a timely manner.

Executive Summary and Strategic Conclusions

Foreign exchange control over residents and non-residents is executed via a dual-level system: alongside the Bank of Russia, the functions of foreign exchange control authorities are entrusted to the FTS of Russia and the FCS of Russia, which simultaneously act as agents and control authorities within their delineated jurisdictions. There is a discernible trend toward the consolidation of agency efforts: the Information Exchange Agreement Between the FCS and FTS dated December 3, 2025, has been executed, scheduled and prompt data exchange is facilitated through the SMEV, and the risk profiles of foreign trade participants are being standardized. This objectively heightens the probability of detecting violations and mandates preemptive foreign exchange compliance from residents.
Under special economic measures, the application of Parts 1 and 2 of Article 19 of the Federal Law No. 173-FZ (repatriation of foreign currency earnings and return of advance payments) is suspended for foreign trade activities and loan provision/repayment operations by Russian legal entities and individual entrepreneurs (Subitem "b" of Item 4 of Decree of the President of the Russian Federation No. 529 dated August 8, 2022). Consequently, a substantial portion of the elements within Article 15.25 of the CAO RF (Parts 4, 4.1, 4.3, 5), as well as Article 193 of the Criminal Code of the Russian Federation, are currently not enforced for such operations due to the absence of the event of an offense (crime) – pursuant to Clause 1 of Part 1 of Article 24.5 of the CAO RF and Clause 1 of Part 1 of Article 24 of the Criminal Procedure Code of the Russian Federation. Nevertheless, this regime is temporary and conditional: it remains valid until amendments are made to Law No. 173-FZ and applies exclusively to operations encompassed by the Decree, meaning it should not be construed as a permanent abolition of repatriation requirements.
Obligations unrelated to repatriation remain in full force: notifying the tax authority about the opening (closing, changing details) of foreign accounts and submitting cash flow reports (the Rules No. 819 for legal entities and individual entrepreneurs; the Rules No. 1365 for individuals). In practice, these obligations generate the bulk of liability enforcements under Parts 1.1, 2, 2.1, and 6 of Article 15.25 of the CAO RF. The cited jurisprudence (Cases No. A14-15544/2023, No. 7-12255/2025, and No. A40-48372/2024) illustrates both the formalistic approach of regulatory authorities and the availability of effective defense strategies.
It is strategically sound to construct the defense across three vectors. Procedurally, this involves monitoring the authority's adherence to deadlines and procedures (the aggregate 485-day timeframe and the 30/67/317-day thresholds under the FTS Administrative Regulations, as well as the 247-day timeframe and 45/145-day thresholds under the FCS Regulations; requirements for the content of document requests) and deploying the presumption of the accuracy of provided data, shifting the burden of refutation to the authority (Item 8 of Resolution of the Plenum of the Supreme Court of the Russian Federation No. 49 dated November 26, 2019, applicable to customs relations). Substantively, this involves relying on circumstances precluding liability (Notes 7–10 to Article 15.25 of the CAO RF, including the "sanctions" Note 10 for the period from February 23, 2022, to December 31, 2023), insignificance (Article 2.9 of the CAO RF), replacing a fine with a warning for a first-time offense (Article 4.1.1 and Part 2 of Article 3.4 of the CAO RF), reducing the fine below the statutory minimum (Parts 2.2 and 3.2 of Article 4.1 of the CAO RF), and utilizing the sanction proportionality criteria established by the Constitutional Court of the Russian Federation (Resolutions No. 34-P dated July 9, 2021, and No. 14-P dated April 2, 2024, concerning Article 15.25 of the CAO RF). Tactically, this requires the prompt remediation of reporting deficiencies upon notification by the authority (within a period of no less than 7 business days) and the proper documentary substantiation of status (including the fact of residence outside the Russian Federation for more than 183 days) to prevent adverse reclassification.
The appeals process is structured along two distinct tracks. Decisions, actions, and inactions of customs authorities are appealed under Chapter 51 of Federal Law No. 289-FZ dated August 3, 2018 (appeals to a superior authority within 3 months; review within 1 month with the possibility of extension). Non-normative acts of tax authorities are appealed to a superior tax authority through a mandatory pre-trial procedure (filing deadline is 1 year), preserving the right to subsequent judicial review. The judicial phase for organizations and individual entrepreneurs unfolds in the arbitration court under the rules of Chapter 24 of the APC RF (a three-month deadline under Part 4 of Article 198 of the APC RF); concurrently, the two-year statute of limitations for administrative liability under Article 15.25 of the CAO RF must be factored in.
The regulatory framework for foreign exchange control and countersanctions remains highly dynamic, demanding rigorous professional monitoring.

________________________

References

Current Issues in the Interaction Between Tax and Customs Authorities. March 18, 2026. Website of the Financial University under the Government of the Russian Federation. URL: https://www.fa.ru/university/structure/university/uso/press-service/press-releases/aktualnye-voprosy-vzaimodeystviya-nalogovykh-i-tamozhennykh-organov
Resolution of the Plenum of the Supreme Court of the Russian Federation No. 49 dated November 26, 2019, On Certain Issues Arising in Judicial Practice in Connection with the Entry into Force of the Customs Code of the Eurasian Economic Union.
Agreement on Information Interaction between the Federal Customs Service and the Federal Tax Service, approved by FCS of Russia No. 01-70/0016 and FTS of Russia No. ED-22-15/61@ dated December 3, 2025.
Decree of the Government of the Russian Federation No. 1874 dated October 20, 2022, On Measures of Support for Mobilized Persons.
Decrees of the President of the Russian Federation No. 79 dated February 28, 2022, No. 81 dated March 1, 2022, No. 430 dated July 5, 2022, Information of the Bank of Russia dated March 2, 2022, Official Clarifications of the Bank of Russia No. 2-OR dated March 18, 2022, No. 4-OR dated April 16, 2022, No. 7-OR dated June 27, 2022, No. 3-OR dated June 2, 2023, Extracts from the minutes of the meeting of the subcommittee of the Government Commission on Monitoring Foreign Investment in the Russian Federation No. 61 dated June 9, 2022 (circulated by the Ministry of Finance of Russia No. 05-06-05/VN-29704 on June 10, 2022), No. 52/2 dated May 23, 2022 (circulated by the Ministry of Finance of Russia No. 05-06-10/VN-33507 on July 1, 2022).
Resolution of the Nineteenth Arbitration Appellate Court dated August 22, 2024, in Case No. A14-15544/2023.
Decision of the Moscow City Court dated October 13, 2025, in Case No. 7-12255/2025.
Resolution of the Ninth Arbitration Appellate Court dated October 10, 2024, in Case No. A40-48372/2024.
Resolution of the Plenum of the Supreme Court of the Russian Federation No. 5 dated March 24, 2005, On Certain Issues Arising for Courts When Applying the Code of Administrative Offenses of the Russian Federation.