Things began to change after the 2008 crisis, when the leading world powers, including Russia, agreed to start a fight with those who evaded paying taxes, and thus bring significant harm to their countries. It was the first “call” to which few listened, and which had brought the world to a sea change in the fight against “dirty” money.
Then was launched the automatic exchange of information between tax authorities of different countries. At present, Russia has agreements already with 73 States and territories. This list includes, for example, the United Kingdom, France, Switzerland, Germany, Cyprus and other jurisdictions.
Become harder to treat Russian money and foreign financial institutions. Variety of documents which are currently required to open a Bank account somewhere in Cyprus or in Switzerland, just rolls. And this is the case, if you do agree to talk.
Not asleep all these years and the native state. Introduced from 1 January 2015 the amendments to the currency legislation actually blocked for the Russians the possibility of a normal investment and trust management through foreign banks. Thus, Russian capital owners fell under a double press: as from foreign financial institutions, and from the FTS.
Something to fear in the future
But that’s not all. On the horizon are clearly visible the new trouble that may soon fall on the heads of wealthy investors. It is better to prepare in advance. Here are some possible problems.
The law on “criminal” Finance
Adopted this year in the UK, it is very quickly gaining popularity around the world. The idea is simple: if your assets (home, cars, jewelry) seem suspicious, then you may be required to present proof that all this wealth is secured by the respective sources of income. Otherwise, it may be confiscated.
Imagine that you have a lovely apartment overlooking Hyde Park in Central London, bought in 2012. Then nobody asked where those millions of pounds, and you head could not come that such evidence “purity” of the money will ever need.
And now, please, can you ask all of this to present to the English court, which will decide on a “clean” or “dirty” money to purchase a property. The latter will have to part with it. I don’t think even then you will be left alone. Yes, and God with it, with the Foggy Albion. If the problem was only in it! It is possible that soon such “miracles” can start happening in Italy, France, Germany and other European countries.
The tightening of the sources of wealth abroad
If the law on criminal Finance is selective and aimed, as a rule, to certain “slices” of the wealth of individuals, it is possible in the future, punitive the “shares”, having a massive and coercive.
We have already seen in the case of total check of Bank accounts of Russians and their mass closure. At the same Cyprus, once the favourite place of Russians, now there are only 2% of customer accounts from Russia of the total in local banks, and in the best years, according to expert estimates, reached almost a quarter.
Now turn may be a property — the most vulnerable and painful area of Russian investment. The scenarios are many. For example, may be subject to retrospective testing for the purity of the sources of income of all property bought by Russians in France or in Italy to 2016 for more than $500 000. The results of such “cleansing” is even hard to predict.
Data analysis of automatic exchange of information
The first swallows have already started to come in on this fall. I believe that by the spring you can expect interesting results. For example, the most simple is the comparison of the final capital, which a person holds abroad, and tax deductions over the years.
Here is an example: the citizen of Petrov placed their savings in three European banks, each with an average of $2 million to all financial institutions he provided the same “help” that the money from the sale of business and related taxes paid by him in Russia.
It’s true! Now, on receiving information that our client stores abroad $6 million, and, of course, begin to his questions, additional taxes, penalties, and maybe worse.
For the sake of it because it’s all about. If you know about it the banks themselves, Mr. Petrov simply “get out” and maybe even freeze his account.
The effects of the Amnesty of capital
I do not exclude that in 2019 there may be “clarifying” questions to the people who took part in this Amnesty. It is possible that people caught in the chain or open a new criminal case. Or someone thought that he was not all and not fully told about their “sins”. You never know — I do believe that amnestied person in Russia receives a peculiar stamp on his whole life, which can always remember. Would be eternally happy if my opinion is erroneous.
Tightening of exchange control
An endless series of sanctions against Russia after the events of 2014 have made this issue very relevant. The threat of a “shutdown” state banks from the possibility to operate with US dollars is very real, and if it will be implemented in November this year, it does not mean that the risk disappeared.
This can happen in the very near future, say, in January or may of 2019. There is a high probability that Russia for its part will be forced in the conditions of severe sanctions to make a number of unpopular measures. One of them may become restrictions to citizens for storage and operations with foreign currency.
The problem of old sins
This is a real bomb, protection from which is very difficult to find. A well-known example of a Russian oligarch who when buying property on the French Riviera have lowered its price to win on taxes.
I have no doubt that this idea had been planted by a local lawyer, who looked at the time, a real good fellow in the eyes of Russian buyers and well make money on it. 10-15 years ago, so did many people, and tax looked at it through his fingers, considering this course it is permitted by the prank.
But times change, and now must answer for it. The idea is that the same lawyer had come to his client and to alert him about it. But, as a rule, no lawyer, no accountant, no financial or tax Advisor does not track your old transaction, and all accumulated over many years, “sins” become available for investigation and punishment.
What to do
First of all, you need to clearly understand that the simple and quick solutions to those issues does not exist. Even if you think that this is so. A good example of this are the purchase of a passport, citizenship or residence in one or another European country, which now has turned into some kind of “label” that identifies competent authorities and financial institutions that a person need to pay special attention.
I believe that the only way out of this situation is the development of his personal long-term financial strategy that would take into account current and future threats to your capital in a timely manner, we set and solve the task of its protection. That is played ahead of the curve.
In one form or another, such work is currently carried out only a few among the very rich Russians on the Forbes list. Life is made. But something like this should become commonplace for all others who are concerned about the fate of their money.
Here are some practical tips at the beginning:
— should start with a professional and independent (both words are key here) examination of the reliability and stability of personal Finance from the point of view of objectives, effectiveness of capital management, the existing and future threats, as reported above;
— to identify the list of current problems and the solutions should establish clear scenarios for their elimination and minimization of possible losses. It is possible to attract specialists in particular fields;
long — term financial strategy should undergo annual testing for appropriate changes;
— special attention should be given to identification and neutralization of old mistakes, a list of which need to be periodically updated;
— current Affairs should not overshadow your long-term goals and monitoring their achievement. These need to be addressed constantly.