To improve the availability of information on financial flows between the European Union (EU) and third countries, EU sanctions against Russia introduce new reporting requirements for payments outside the EU. The aim of these measures is to identify sectors at high risk of sanction evasion and uncover sources of income for Russia, explains the Financial Intelligence Unit (FID).
From May 1, legal entities registered in Latvia must report to the FID quarterly if payments to countries outside the EU exceed 100,000 euros in a quarter. Reports must be submitted by those legal entities whose owners are:
- Legal entities or structures registered in Russia;
- Russian nationals;
- Individuals residing in Russia.
Regulation 833/2014 stipulates that the reporting obligation also applies to companies whose owners include multiple persons collectively, such as when 20% is owned by a company registered in Russia and 20% by a person residing in Russia.
The first report must be submitted by May 15 and must include payments made from January 1, 2024, to March 31, 2024. Subsequently, reports must be submitted within two weeks after the end of each quarter.
The reports must be submitted by the legal entity itself with a certification by an official! For additional information on the reporting obligation and document submission, you can contact our specialists.
©INNOVATOR 29.05.2024.