Who is the currency control agent?

 Who is the currency control agent

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With partial regulation of the economy, when there is incomplete competition, restrictions need to be imposed in currency transactions. Institutions that play the role of currency control agents are central to this system of regulation.


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Currency control is usually introduced in countries where the currency does not have the status of an independently convertible. Under these conditions, regulation of operations for the purchase and sale of foreign currency, as well as control of the movement of currency at the state's border, is of particular importance. As a rule, the effect on the market of state currencies takes place in legislative ways.


The list of bodies performing currency control is governed by federal legislation "On Currency Regulation and Currency Control". Currency control refers to a special system of measures that state rules have to follow when conducting currency transactions.


The basis of control is the restriction of the right of citizens to purchase foreign currency, as well as the ability of non-residents to obtain domestic currency. Such a framework is needed to prevent possible outflow of capital. Currency control is usually introduced in countries with partially regulated currencies. Stable states in the economy are not in urgent need of exchange control.


Currency control agents on the territory of the Russian Federation are authorized banks subject to CBR; Vnesheconombank; Customs and tax authorities; Securities market professionals and regular participants (including registry holders). These entities differ from the currency control authorities in that they cannot impose punitive measures against market participants who violate the currency legislation. The position of the currency control agent does not entitle the institution to seek the alleviation of the manifest violation.


The agents' actions include examining the degree of compliance of operations with currency with existing legislation; Verification of accounting and reporting in the field of currency transactions; Verification of documentation related to maintenance of currency accounts.


Currency control agents should immediately provide control officers with information about their activities related to currency transactions. The duties of these institutions include the observance of official, commercial as well as banking secrets, the use of which they receive in connection with the performance of their activities.


In this case when currency control agents during their activities disclose violations of the rules established by the law, they hand over the relevant information to the currency control authority, which has the authority to ban the violator. Such information includes information about a natural or legal person; Description of the violation; Indication of an infringement legal act; Amount of illegal operation.


In their activities, organizations acting as currency control agents move beyond the undisputed priority of economic measures in the implementation of state policy in the complex and responsible field of currency regulation. Such activity should exclude the intervention of state bodies in the matter of currency regulation and not due to necessity.


Authorized banks are the key elements in the system of regulation of currency operations in the Russian Federation. These institutions have the right to a monopoly examination of operations conducted by other banks and participants of the foreign exchange market.


As agents of currency control, such banks examine permits and special licenses that give the right to operate with currency, and also supervise the fulfillment of obligations to sell the Monetary Fund derived from export operations.


The status of these market participants not only empowers them to conduct currency transactions themselves, but also means that they are obliged to maintain complete currency control, including the right to transfer income to check export-import transactions and transfer accounts .


The need for the activities of the Institute of Currency Control Agents is due to the fact that with the introduction of strict rules of currency regulation, a "black market" arises in which currency is exchanged in violation of the law. The result of such illegal operations is a situation where the actual exchange rate differs sharply from the one determined by the state. The presence of a system of government agencies and currency control agents allows us to limit the shadow exchange market.


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