The Russian Finance Ministry and the Central Bank have been given until January 20, 2014 to draft an agreement on bilateral cooperation to implement the U.S. Foreign Account Tax Compliance Act, which requires banks to provide the U.S. customs service with information about accounts opened by U.S. tax payers and legal entities affiliated with them.

Russian Prime Minister Dmitry Medvedev issued this instruction following a November 28 session, which addressed the banking system's development, the government's press service said.

FATCA, which comes into force on July 1, 2014, will collect information on accounts held by U.S. taxpayers in all the countries.

A Russian-U.S. draft agreement concerning FATCA will require banks to submit information to the U.S. Internal Revenue Service through Russia's Federal Tax Service.

Russia might adopt Foreign Account Compliance Tax Act in 2014

Russia appears to have finally yielded to American pressure to adopt a tax dodgers’ law known as the Foreign Account Tax Compliance Act (FATCA). Arguments advanced by Russian economists may have prevailed over the penchant of some Russian politicians to see any and all U.S. initiatives as a threat to Russia’s sovereignty. Experts are now waiting to see how further negotiations proceed. Read more>>>

The information in this section is provided by the Interfax news agency and is intended for personal use only. It may not be reproduced or distributed in any form without express permission from Interfax. To request permission to republish, email: ifaxru@interfax.ru