Archives: Russia

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FinCEN proposes ban on Latvian bank

On February 13, 2018, the U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) issued a finding and notice of proposed rulemaking (“NPRM”), pursuant to the USA Patriot Act, seeking to prohibit the opening or maintaining of a correspondent account in the United States for, or on behalf of, ABLV Bank, AS (“ABLV”). Details of Allegations … Continue Reading

Russia Data Privacy Update – New Regulations

In July 2014 Russia enacted Federal Law No. 242-FZ which introduced new requirements for storage of personal data of Russian citizens (the “Amendment”). The Amendment will become effective September 1, 2016. The purpose of the Amendment is two-fold: No. 1: It amends Federal Law No. 152-FZ “On Personal Data” dated July 27, 2006 (the “Personal … Continue Reading

Continuing Development of Fiduciary Duty Standard Under Russian Law: Civil Damages Assessed Against Director Accused of Bribery

In Lee v. Lukshin (Case No. А12-6860/2013, February 20, 2014), the plaintiff, a minority shareholder (holding 16.59% shares) of OJSC “Meat Plant Filonovskiy” (the Company) successfully pursued a derivative action for damages against the former general director (the Executive) of the Company, who was convicted under Article 291(2) of the Criminal Code in an earlier … Continue Reading

Russian State Officials Face Enhanced Control Over Their Expenditures

At the beginning of December, 2012, Russian President Vladimir Putin signed into law Federal Law No. 230-FZ, “On control over consistency of expenditures of persons holding government offices and of other persons to their incomes” (the “Law”). The Law requires certain disclosures by government officials’ regarding their expenditures and is viewed as the next important … Continue Reading

New Anti-Money Laundering Initiative Aims to Improve Transparency

The Russian Federal Financial Monitoring Service (“Rosfinmonitoring”) has set forth a draft law, introducing amendments to a number of legal acts and aimed at increasing the transparency of currency transactions and at strengthening anti-money laundering measures in Russia. The most important amendments are planned to be introduced into Federal Law No. 115-FZ dated August 7, … Continue Reading

Russia’s Recent Initiatives To Increase Transparency Of State Officials

Russia is consistently developing anti-corruption legislation. Earlier this year Russian President approved National Anti-Corruption Plan for the years 2012 – 2013. As a step further Russia is planning to adopt laws aimed at increasing control over Russian state officials’ expenditures. In March 2012, the then-Russian president Dmitry Medvedev adopted National Anti-Corruption Plan for the years … Continue Reading

Russian State-Owned Companies Face New Disclosure Requirements

Russian government has ordered state-owned companies to disclose information on beneficiaries of their counter-parties. In the end of the year 2011 Russian prime-minister demanded that the major Russian state-owned companies and companies majority-owned by Russian state, including RZD, Rosatom, Transneft, GAZPROM, Aeroflot, INTER RAO UES and others (a “State-owned company”), require their counter-parties under the … Continue Reading

Russian Federation Accedes to Antibribery Convention (Россия присоединилась к Конвенции по борьбе с коррупцией)

On February 1, 2012 Russia ratified the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (the Convention)   The Convention was adopted by the Organisation for Economic Co-operation and Development (OECD) in 1997. It provides that signatories undertake to amend national legislation to criminalize bribery of foreign public officials by … Continue Reading

From Russia with Love: Multiplication Table for Bribery Fines

Marina Ushakova, of Squire Sander’s Moscow office, and Ritchie Thomas, of Squire Sander’s Washington, D.C. office, have the following to say about recent anticorruption developments in Russia: Russia is on the threshold of a drastic change in the design of its system of penalties for bribery, both on the supply side and on the demand … Continue Reading

A Few Bad Apples: Corruption In the EBRD

Four Russian officials appointed by the Russian Economic Development Industry to the European Bank for Reconstruction and Development (EBRD) are being investigated by the City of London and Russian police for charges that include accepting bribes and doling out false credits to various projects. According to an EBRD spokesman, it is not clear what spurred … Continue Reading

Glass Half Empty or Half Full? Stamping Out Corruption One GRECO Recommendation at a Time

On February 1, 2007, Russia became a member of the Group of States against Corruption (GRECO). GRECO monitors the compliance by its members with the Council of Europe’s anti-corruption standards through a process of mutual evaluation and peer pressure, helping to identify deficiencies in national anti-corruption policies, prompting the necessary legislative, institutional and practical reforms. … Continue Reading

Panalpina’s Hangover After the Russian Corruption Party

Russia’s hosting a great party–everyone’s invited. Who will be able to survive the hangover from Russia’s samogon (moonshine)? U.S.-based Panalpina, Inc. and its parent Panalpina World Transport (Holding) Ltd., a Swiss freight forwarding company with 10 offices across Russia, were charged with FCPA violations that occurred in Russia. The charges were for both conspiring to … Continue Reading