Changes in currency regulation control from July 9, 2021

The Law of June 30, 2020 No. 36-Z “On Amendments to the Laws on Currency Regulation and Currency Control” (hereinafter – the “Law”) amends some currency regulations and currency control rules aimed at liberalizing currency relations and devaluing the economy.

On July 9, 2021 changes in the following areas will come into force:

• For residents, the obligation to register currency treaties and submit documents and other information on the fulfilment of obligations under them according to the established order of the National Bank is introduced. Thus, the regime for carrying out currency transactions changes from permission to registration.

• Legal entities-residents will be required to ensure, except for some cases, crediting of Belarusian roubles and (or) foreign currency to their accounts opened with banks of the Republic of Belarus during export and import (hereinafter – “Repatriation”). The rule applies in case of a refund in the event of improper performance by a non-resident of contractual obligations. The term of Repatriation will be determined by the resident legal entity independently, based on the conditions and actual terms of fulfilment of obligations by the parties under a currency treaty which provides for export/import. The procedure for determining such a period will be established by the National Bank.
• The residents will have the right without restrictions:
  • To open accounts in Belarusian roubles and foreign currency in foreign banks, open accounts in foreign currency in banks of the Republic of Belarus, and carry out transactions on them,

Exception: the establishment of restrictions by legislative acts, and also introduction of currency restrictions

• • To transfer Belarusian roubles and foreign currency to their accounts opened in foreign banks from their accounts opened in banks of the Republic of Belarus or in foreign banks, and vice versa,
  • To receive Belarusian roubles and foreign currency into accounts opened in foreign banks (in certain cases).

Exception: introduction of currency restrictions.

• Legal entities-residents will have the right without restrictions to carry out currency transactions using Belarusian roubles and (or) foreign currency credited to accounts opened in foreign banks (in compliance with the rules for crediting foreign currency earnings), except for prohibited currency transactions.

Exception: introduction of currency restrictions.

• Individuals-residents will have the right without restrictions to carry out currency transactions using Belarusian roubles and (or) foreign currency credited to accounts opened in foreign banks, except for prohibited currency transactions.

Exception: introduction of currency restrictions.

Functions of currency control authorities:

• The function of the National Bank to issue permits for the purposes of currency regulation and currency control will be abolished, but, for example, there will be added power to establish the procedure for performing transactions with electronic money, the power to introduce “currency restrictions” by the National Bank, together with the Government of the Republic of Belarus, for a period not more than 1 year in case of a threat to the economic security of the Republic of Belarus, including the stability of the financial system, if the situation cannot be resolved by other measures of economic policy.

You can read about the rules that will be valid until July 9, 2021 at the link.