With partial regulation of the economy, when there is incomplete competition, it becomes necessary to implement restrictions on currency transactions. The central link in this regulatory system are institutions that play the role of agents of foreign exchange control.
Currency control is usually introduced in those countries where the currency does not have the status of freely convertible. In these conditions, the regulation of transactions for the purchase and sale of foreign exchange funds, as well as control over the movement of currency across the state border, becomes especially important. The government, as a rule, exerts its influence on the currency market by legislative methods.
The list of bodies that perform the functions of currency control is regulated by the Federal Law “On Currency Regulation and Currency Control”. Currency control implies a special system of measures that the state takes to comply with the rules when conducting currency transactions.
The basis of control is the restriction of the right of citizens to buy foreign currency, as well as the ability of non-residents to acquire domestic currency. Such a framework is needed to prevent possible capital outflows. Foreign exchange controls are usually introduced in countries with partially regulated currencies. States with stable economies do not experience an urgent need for foreign exchange controls.
The agents of currency control on the territory of the Russian Federation are authorized banks that are subordinate to the Central Bank of the Russian Federation; Vnesheconombank; customs and tax authorities; professional and regular participants in the securities market (including registry holders). These entities differ from foreign exchange control authorities in that they cannot apply punitive measures against those market participants who violate foreign exchange legislation. The status of a currency control agent does not give the institution the right to demand the elimination of the identified violations.
The functions of agents include checking the degree of compliance of currency transactions with the current legislation; verification of accounting and reporting in the field of currency transactions; verification of documentation related to the maintenance of foreign currency accounts.
Currency control agents must promptly provide the regulatory authorities with information on their activities that relate to currency transactions. The duties of these institutions also include the observance of official, commercial, and banking secrets, access to which they receive in connection with the performance of their activities.
In the event that currency control agents in the course of their activities reveal violations of the rules established by law, they transmit the relevant information to the currency control body, which has the right to apply sanctions to the violator. Such information includes data about an individual or legal entity; description of the violation; indication of the violated legal act; the amount of the illegal transaction.
In their activities, organizations acting as agents of foreign exchange control proceed from the indisputable priority of economic measures in the implementation of state policy in the complex and responsible area of foreign exchange regulation. Such activity should exclude unnecessary interference of state bodies in the matter of currency regulation.
The key link in the system of regulation of foreign exchange transactions in the Russian Federation is the authorized banks. These institutions have the right to monopoly certification of transactions carried out by other banks and foreign exchange market participants.
As agents of foreign exchange control, such banks check permits and special licenses entitling them to carry out foreign exchange operations, and also control the fulfillment of obligations to sell foreign exchange funds received from export operations.
The status of these market participants not only gives them the right to conduct currency transactions themselves, but also implies the obligation to maintain full-fledged currency control, including checking export-import transactions and the correct transfer of proceeds to transit accounts.
The need for the institution of currency control agents is due to the fact that when strict rules of currency regulation are introduced, a “black market” arises, where currency exchange is carried out in violation of the law. The result of such illegal transactions is a situation where the real exchange rate differs sharply from that set by the state. The presence of a system of government agencies and foreign exchange control agents allows limiting the shadow market for currency exchange.
