The Ministry of Finance proposed a bill that would give protection to high-ranking employees of the Central Bank and the Deposit Insurance Agency against prosecution for their decisions. Officials believe that then employees will defend their “motivated decisions” and this will help in disputes with bankers. But for some reason, it looks like an attempt to protect themselves from punishment for mediocre actions.
The Ministry of Finance decided to protect some of the employees from possible prosecution. He proposed immunity for officials of the Central Bank in the fall, and now immunity for officials of the Deposit Insurance Agency (DIA). The main goal: to protect them from prosecution for their decisions, even after the expiration of their term of office.
Protection is not omnipotent: immunity will be removed in case of abuse of official position, abuse of authority and in the presence of corruption. This applies to securities, but the DIA has similar requirements.
The Central Bank has already voiced the list of employees who can avoid responsibility: these are the chairman and his deputies, the board of directors, the chief auditor and accountant, the heads of departments, main departments and divisions. The chiefs of the press service, the Central Bank apparatus, the secretariat, together with the general inspector and the state secretary, will avoid prosecution at the same time.
DIA has not yet made its list.
According to the Ministry of Finance explanation, these amendments will provide protection against the consequences of an unintended error in decisions taken and protect against unwarranted persecution. This, together, will allow you to freely do your work.
If the plan is met, the amendments will come into force at the end of 2017.
There is a version that this bill will deduce the Central Bank and its subordinate structure of the DIA from the prosecutor’s supervision. The prosecutor’s office, as a body of general oversight, can involve for consideration of the case, including against the Central Bank and its employees. Lawyers are confident that in a criminal case, the amendments will not protect employees, and in civil cases, organizations themselves and not specific individuals are responsible.
Protection of assets: beneficiaries in Russia will be obliged to pay debts of a bankrupt company within 3 years after bankruptcy
Protect your assets yourself: lifting personal responsibility will lead to total irresponsibility
This initiative, in my opinion, is a direct path to final irresponsibility when making decisions in the most powerful body of the country. And the statements of some ordinary people that “the bank will have freedom and there will be no fear that they will be shot as in the year 37” speaks of a lack of understanding of how relationships work. And at the level between people, and between the state and citizens.
It is easier to give an example of the protection of the castle in the Middle Ages. If during an attack, it suddenly turned out that there was no food within the walls, there were not enough arrows, or all the soldiers were walking in a field 300 km from the base, then what would happen? Responsible for such misconduct cut off the head, because their negligence led to a losing and even fatal situation.
In the modern world, misconduct is not cut off the head (at least in our area and conditionally western culture). For misdemeanors punished with a fine: did not perform official duties – you lose the salary. The failed deal – did not receive a percentage of increase. Your actions led to a catastrophe – go to court.
Protection of Assets through Trusts: Creditors and Scammers Do Not Reach Your Assets.
And so it turns out that there is always a specific person who is responsible for the result: it signs the document, accepts the order, issues a certificate.
In this case, we clearly know who to ask for clarification if the situation, product or service does not correspond to that described in the documents.
Central Bank and DIA organizations of the level that do not affect a single business, sector or group of people. They affect the economy as a whole. Their actions affect not only those who have a bank account or those who lost their license for fraud. They affect every inhabitant and the economic security of the whole country.
It is clear that there are no perfect solutions and faultless actions. But for this, there are preventive measures, fines, reprimands and probation periods.
In any case, this does not mean that it is necessary to disclaim any responsibility for your behavior and decisions made. Unfortunately, this is done in practice when the requirements of the law or higher institutions are not fulfilled. It is also proposed to introduce irresponsibility at the legislative level.
And then they say that the economy needs to be raised? About import substitution? The authorities are not responsible for their decisions that affect everyone in the country! What kind of development is it? Recall Singapore, where the subordination of a common goal and development was fundamental and allowed for 50 years of great success. Similarly, although in a different way, the Soviet Union was built – the subordination of the goal and tough measures to curb sabotage.
Panama Private Fund for building an asset protection strategy
In our time, however, there is no clear goal. And no one wants to keep an answer for the steps taken. In other words, “we will do something, but we do not guarantee that something will work out. And we do not want you to punish us for it. “
The Ministry of Finance expressed that victims often do not agree with the decisions of officials (banks whose licenses were revoked) or other players. They sue, which slows down the work, causes fear and reduces the motivation of employees.
In other words, you directly say that you do not know what you are doing, why you are doing it and what result will come of it? And you realize that decisions turn out to be wrong in some cases and are not ready to accept their mistake?
As I recall, Russia is a state of law, even if we take into account various reservations. The Central Bank and the DIA are local government structures. If they are sued, lawyers and investigators will examine all the evidence and documents and decide whether it was a crime or not. If the decision was really made with a random error or was justified at that time, the court will close the case and that’s it.
If there is misconduct, then it will be studied carefully with all the ensuing consequences.
According to the logic of officials, they cannot even doubt the infallibility of their opinions. And from those who doubt, high-ranking officials will be protected by law, which will allow them to calmly catch Pokemon at meetings and not worry about the persecution after the end of their powers.
Imagine that your accountant in the company decides to change the rules for paying bills on the move, delay payments to employees, transfer your profits not to where you asked, but to a deliberately forbidden offshore with all the consequences for you as a beneficiary? What will you do? Dismiss and file a lawsuit against such a person.
Investing in privacy is a valuable asset in times of total transparency.
The Central Bank believes that it is higher than this. He can adapt his own policy, not hold the ruble, not stop the actions of fraudsters, and even speak openly about the existence of legal loopholes for the legalization of criminal funds.
And the next day, to deprive banks of licenses, freeze the accounts of citizens who withdraw funds abroad. Now, these actions are covered by the law on money laundering or by the requirements of the OECD and the law on CFC. And if the bill enters into force, the Central Bank will be able to do anything, and the employees who have taken this or that decision will come out of the water.
Protect your assets yourself: foreign account and well-thought-out strategy
We can say that this bill is a kind of cherry to the changes of the past 2016. 49 reasons to open an account abroad were considered insufficient. We decided to make the banking system unpredictable, because if there is no responsibility and even fear of punishment, then you can act as you please.
Therefore, it turns out again that asset protection is only in your hands. The banking sector in Russia raises concerns for a long time, but this approach can finally bury confidence in it.
Not only are banks cleaned to the right and left, not only bad but also workers; moreover, commercial banks were obliged to conduct real investigations on every client and every transaction. Now it became harder to argue.
The only way out of this situation is to ensure the security of my assets in another jurisdiction. Fortunately, it is still legal to withdraw funds abroad.
How to choose a reliable bank abroad and open an account in it? The procedure consists of several steps and looks like this:
- Sign up for a free consultation on opening a bank account;
- Filling out a questionnaire with information about your goals and the proposed work with the account is an important step because it is your information that the specialist will select the list of countries and banks that are best suited for your particular situation;
- Come to a free consultation, hear information, ask questions and get answers to them;
- Choose the appropriate bank.
After this stage, you need to prepare documents to open an account, pay the cost of opening an account. The consultants will make sure that you have filled out the questionnaires correctly, collected a full package of documents, transferred the necessary papers and then they will ensure the opening of an account in the bank.
Proved again: investing in gold is the best strategy for asset protection
After a few days or a couple of weeks, depending on the bank and its requirements, you will receive a foreign account.
You will have a tool that not only protects you from the authorities, the Central Bank and the unpredictable economic policy but also reduces the risk of capital loss, helps increase it or invest in potentially profitable instruments abroad.
You yourself can choose whether it will be real estate, stocks, business, etc.
The only caveat to keep in mind: while you are a tax resident of Russia, you are obliged to report on opening and closing foreign accounts, as well as submit annual reports on the movement of funds on them.
Offshore – a mechanism to protect assets or theft?
To stop being a tax resident, you must be absent from Russia for more than 6 months in the last 12 months. This will allow avoiding not only reporting on accounts but also reporting on controlled foreign companies. And the method of changing tax residency is very popular among the most wealthy businessmen.