Opening a foreign currency account- one of the popular services for companies (legal entities), ordinary citizens and individual entrepreneurs. The purpose of such an account is to store funds in monetary units of other countries for the purpose of subsequent management and accumulation.

The conditions, procedure and rules for opening foreign currency accounts are specified in the following documents :

• Federal Law - on currency regulation and control.
• Regulations of the Central Bank (created on the basis of this Federal Law).
• Bank rules.

Opening a foreign currency account by a legal entity or individual is available in banks that have a license from the Central Bank of the Russian Federation, confirming the right to work with such a bank account.

Service for individuals

To open an account in foreign currency, an individual must :

• Select a suitable banking institution.
• Decide on the conditions.
• Contact the bank and hand over the papers.

The procedure for opening a foreign currency account for citizens involves presenting :

• Passports (foreign or domestic).
• Military ID (in some cases).

It is also required to fill out and sign an agreement with the subsequent payment of a certain amount (stipulated by the banks’ conditions). Next, the client is given a special form, which specifies the amount of funds transferred for storage.

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Individuals have the right to open an account in the money of any country with which the credit institution works. Account options :

• "Poste restante".
• Short-term (3-12 months).
• Long-term (from a year or more).

Opening a foreign currency account by a legal entity: types and details of registration

It is important to understand that together with a foreign currency account, a legal entity opens three types of accounts at once :

• Current- the main account on which the remaining funds accumulate after the mandatory sale of currency.
• Transit- intermediate (special) account. Used for crediting money after the transaction and passing exchange control.
• Special transit- an account that is necessary to account for foreign money purchased in the Russian Federation.

Before opening a foreign currency account, a legal entity must familiarize itself with the conditions of the credit institution in terms of the documents provided. Wherein The procedure for opening a foreign currency account is organized as follows: :

• Filling out the application.
• Drawing up an agreement with a financial institution for account servicing.
• Transfer of a complete package of papers.

The conditions for opening a foreign currency account imply the transfer of such securities (for companies) :

• Certificate of state registration.
• A card with signatures of persons who are given the right to manage the account. There should also be company seals here.
• Founding papers.
• Certificates of registration in the structures of state statistics and the Federal Tax Service.
• Other documents.

Types of operations available for companies

Legal entities (companies) after opening a foreign currency account have access to various transactions . The latter are divided into two categories:

1. First:

• Processing loans for a period of up to six months.
• Financial transactions (transactions related to the import/export of goods).
• Transfers directly related to the accrual of dividend payments, interest and other types of profit.
• Other transactions related to the movement of finances (payments, pension accruals).

1. Second:

• Investing money in companies from other countries. This also includes investing in stocks or bonds.
• Obtaining loans for a period of six months or more.
• Payments for real estate.
• Other transactions with funds in a foreign currency account that cannot be classified as current.

How much does it cost to open a foreign currency account for companies?

Credit institutions have a loyal approach to existing clients. If a legal entity already has a cash settlement agreement, opening an account in foreign currency will be free. If the company is just planning to open a bank account, obtaining an additional service in the form of a foreign currency account will cost 1-2 thousand rubles (opening conditions often vary depending on the credit institution).

What's the result?

Opening a foreign currency account- a necessary service for legal entities or individual entrepreneurs working with companies from other countries. It is no less important for individuals who want to hold and increase savings in foreign currency.

Financial organizations of the Russian Federation provide their clients with the opportunity to open accounts not only in rubles, but also in foreign currency equivalents. Knowing how to open a foreign currency account for an individual, the consumer will be able to easily use such a service, appreciating all its advantages and avoiding possible problems.

What is a foreign currency account?

Before you figure out how to properly open a foreign currency account for individuals, you need to understand what it is. In essence, this is a standard personal deposit, the currency of which is dollars, euros or any other types of foreign funds.

Deposit operations, its opening and other aspects are regulated by legislation by the Federal Law “On Currency Control”, as well as certain regulations of the Central Bank of the Russian Federation. An individual has two types of transactions that he can carry out using such an account.

It is advisable to include money transfers, payments for goods, the use of credit services for periods of less than six months, the accrual of interest, dividends, and other types of income. In addition, this group includes other regular payments - employee salaries, pension payments and others.

The second group involves operations that involve the movement of funds on deposit in large volumes. Among them, we should highlight various types of investments, payments for real estate of foreign countries, long-term loan obligations, deferred payments, and other similar payments.

If the funds are not used within the specified period, the consumer has the right to receive interest for their storage, the amount of which depends on the conditions of a particular financial institution.

Currency accounts have both pros and cons

Advantages and disadvantages

This form of placement of funds has significantly more advantages than disadvantages. First of all, these should include simplification of settlement procedures with foreign companies and partners. This kind of product has other advantages:

1. There is no need for the services of exchangers, the ability to perform all transactions remotely.
2. The ability to make transfers without traditional conversion and, accordingly, paying commission fees (subject to transfer to a deposit with an identical currency).
3. A more stable exchange rate compared to the domestic currency (relevant for the dollar, euro and British pound, as well as some other types).

Despite the obvious advantages of using such a product, there are a number of disadvantages that must be taken into account. First of all, these are commissions and fees from financial organizations that open an account, which include its maintenance, opening, and other services.

In addition, the exchange rate of the selected currency may change significantly in a negative direction, which will make it cheaper in relation to its domestic counterpart. Such a development of events occurs infrequently, however, it can lead to serious losses for the account owner.

Opening procedure

The procedure for registering and opening a deposit in foreign currency will not require significant time expenditure from the client. The range of offers from banking organizations in the Russian Federation regarding such services is extremely wide, which allows each client to choose the most suitable option for their needs.

In order for the opening process to be successful, the consumer must provide the bank with a minimum package of documents:

• passport of a citizen of the Russian Federation;
• completed application;
• the amount required to initially open an account.

The latter, as a rule, is not distinguished by impressive volumes and implies a minimum contribution of 5-10 units of the currency chosen by the consumer. If an individual is already an existing client of the selected financial institution, he will most likely be able to open an account without depositing additional funds.

It should be remembered that during the opening of the product, the client can issue a plastic card linked to it from one of the payment systems, which will make it more convenient to make purchases and simplify some transactions.

Opening a foreign currency account follows a standard procedure

Account selection features

Individuals can take advantage of one of the many offers regarding opening an account in foreign currency. The most common types of such products are a deposit or a standard account used exclusively for settlement transactions. The first option allows you to receive a certain profit from placing funds in the bank.

Deposits are not very popular, which is due to the low interest rate, which in most cases does not exceed 3%. If the deposit agreement is terminated early, the consumer will not receive a profit, which makes this option unprofitable.

A traditional foreign currency account is only suitable for transactions using foreign funds. However, it does not provide the opportunity to receive income only for placing capital, which does not allow it to be considered a full-fledged investment instrument.

A compromise option that many financial institutions offer is a multi-currency account. It has a number of features:

1. Allows you to move funds between accounts at any time, converting them.
2. As a rule, US dollars, rubles and euros are available for the consumer to choose from.
3. The interest rate is calculated on the account in the same way as with deposit products.

In addition to the passive income that a client can receive from storing funds in multi-currency accounts, he also has the opportunity to earn on the difference in exchange rates.

In addition, this option is ideal for long-term placement of funds, since if there is a negative forecast for one of the currencies, all finances can be immediately transferred to another.

Since most financial institutions offer such products, the client should make a choice based on a number of criteria. It is advisable to include among them:

1. The amount required to open an account, the cost of annual maintenance.
2. Tariffs and commissions provided for transactions, as well as deposit/withdrawal of funds.
3. Availability of a remote account management system.

Among the largest banks that offer their clients the opportunity to place funds in foreign currency are Sberbank of the Russian Federation, VTB, Otkritie Bank, CreditEurope Bank, Alfa-Bank. When figuring out which bank you can open a foreign currency account with, it would be wise to study in more detail the offers of the largest financial organizations.

The conditions for opening and servicing a foreign currency account differ from bank to bank.

Sberbank of the Russian Federation

This bank is rightfully considered one of the most reliable, since the size of its assets and the number of clients significantly exceed those of other institutions. The main feature of Sberbank’s foreign exchange products is their diversity, which allows you to choose the optimal conditions for placing funds, as well as the ability to remotely manage your account using the service.

Interest rates are relatively low and range from 0.01 to 1.5% annually. The placement period can vary from 1 month to 3 or more years. If the client is not interested in deposits, it is advisable to study offers on foreign currency accounts. There are 2 of them – “Universal” and “On demand”.

The first one is valid for 5 years, and its contract is automatically renewed an unlimited number of times. The second does not provide any restrictions on the validity period. Interest on account balances is minimal and amounts to 0.01% per year. A characteristic feature of the accounts is a wide range of currencies available for use.

The terms and conditions of this bank include:

• no service fee;
• The minimum amount for concluding an agreement is $5. A similar value is typical for the minimum balance;
• the number of transactions for withdrawing and depositing cash has no restrictions.

Such features make the offer from Sberbank optimal for using the product as a settlement tool.

VTB

The financial institution VTB can offer clients only one product that involves the placement of foreign currency. It is a standard current account, which does not accrue interest or other bonuses for its owner, which makes the offer unprofitable.

Among the advantages of the product, it is advisable to include the absence of deposit terms, restrictions on the minimum amount, as well as on operations for withdrawing and replenishing the balance. It is also possible to use online banking to open and manage an account.

Alfa Bank

Alfa-Bank has a much wider range of offers and a client can open an account using one of 4 main tariff plans. They differ not only in the cost of maintenance, but also in the capabilities they provide to their owner. An important feature of Alfa-Bank’s conditions is the free use of the tariff if the account is used to credit the main income of its owner.

The consumer has access to a multi-currency account with a standard set of currencies - rubles, dollars and euros. At the same time, income on the balance can reach 7% in ruble equivalent and 1.5% in foreign currency. When opening an account, Alfa-Bank issues a card attached to it free of charge, and all transactions with funds are available to clients using.

This option seems optimal for those consumers who often use foreign currency when traveling abroad, but prefer rubles as the main monetary unit in everyday life.

In order to conduct foreign trade transactions, Russian legal entities often require an account in the currency of another state (most often in US dollars or euros). This is due to the fact that the Russian currency is not used as a means of payment by all subjects of foreign trade relations. Opening a foreign currency account by a legal entity in banks in the Russian Federation, as a rule, is not a problem for both domestic and foreign entities.

Procedure for opening and maintaining a foreign currency account

Legal entities from other countries have the right to open foreign currency accounts in authorized banks in our country that have the appropriate license, without any restrictions.

As for foreign currency accounts of Russian legal entities, the latter have the right to:

• firstly, open such accounts in authorized banks;
• secondly, open such accounts in banks of other countries.

In addition to this message, a Russian organization that has opened an account abroad is required to report to the tax office every quarter on the movement of funds in the account, attaching documents confirming such movement (statements or other documents).

Violation of the deadline for submitting such a report will entail a fine in accordance with parts 6.1 - 6.3 of Art. 15.25 of the Code of Administrative Offenses of the Russian Federation, depending on the period of delay from 5 to 50 thousand rubles.

Entrepreneurs do not enjoy any benefits in the performance of these duties in comparison with legal entities. The opening of a foreign currency account for an individual entrepreneur must also be accompanied by a message with information about opening an account in a bank of another state to the tax office. In addition, entrepreneurs, along with legal entities, must report to the tax office every quarter on the movement of funds in the account.

The liability of entrepreneurs is not as severe as that of legal entities.

For violating the deadline for fulfilling the obligation to notify about opening an account, an entrepreneur may be subject to a fine of 5 to 10 thousand rubles. For failure to provide this information, the fine ranges from 40 to 50 thousand. Failure to comply with the deadline for submitting a quarterly report will result in a fine of 500 to 5 thousand rubles.

How to open a foreign currency account in a bank is a question asked by almost every person whose life or work is in one way or another connected with foreign exchange transactions. The main advantage of opening such an account is the ability to conduct transactions without additional costs in the form of commissions.

Pros of foreign currency accounts

An account in foreign currency has certain advantages:

• Allows you to carry out various operations (purchase and sale) without going to exchange offices, as well as use the currency that exchange offices may not have at all.
• You will be able to make transfers through the bank to your loved ones who are abroad, pay for tourist trips and studies abroad. This is a more convenient and profitable method, in contrast to transfers through international payment systems, since they involve currency conversion.
• Makes it possible to pay off loans and debts without spending money on unnecessary fees. Read more about loans in euros on this page. The payment amount is not limited.
• Eliminates the need to transport foreign currency when traveling abroad: you can open a special account that will allow you to cash out funds in any country.
• Be sure to ask the bank of your choice about the possibility of opening a multi-currency account. This will be useful for traveling to European Union countries. You can read more about such accounts on this page.
• Provides the opportunity to manage your money through a mobile phone or computer. Internet and mobile banking services are available in almost all banks today. Thus, you can be aware of all transactions made on the account without leaving home.

When you decide to open a foreign currency account, keep in mind that in each bank the cost of services (opening and servicing accounts) is different - you should not lose sight of this point. Also, each banking organization has a certain fee for transferring funds to the accounts of other companies, plus commissions for withdrawing money.

How to open a foreign currency account: description of the procedure

The main thing you need to pay attention to is the one-time opening fee and the cost of maintenance per year, as well as the amount of commission for cashing out funds or transferring to another account. In addition, currency exchange rates and a wide range of services in foreign currency are important.

To open a foreign currency account you need to prepare:

• passport
• application for opening an account
• a certain amount of money required to open (usually 5-10 dollars).

After this, the specialist will prepare the documents and provide them to you for signature. Read the agreement carefully and pay special attention to the clause regarding the calculation of interest on the balance of funds. Typically, clients are offered to issue a plastic MC or Visa card linked to their account.

Which currency account to choose

There are usually 4 options:

• foreign currency account
• multiple currency account

The first two options are suitable for those who want to open an account for conducting transactions, rather than storing or accumulating money. At the same time, a multicurrency account makes it possible to work with several currencies simultaneously.

The third option is needed for those who want to receive additional income in the form of accrued interest. The advantage of a multicurrency deposit is the ability to save funds even with sharp fluctuations in exchange rates, as well as withdraw funds in one of the currencies.

Which is better: a foreign currency account or a deposit?

If you need an account in order to save and increase your existing funds and, preferably, receive a certain interest on them, we advise you to open a deposit in foreign currency. The interest on it is lower than on the ruble one, but if you do not plan to withdraw cash, a decent amount can accumulate over the year.

The advantage of such an offer will be the opening of a transit account to which money can be transferred to third parties and organizations, and withdrawn if necessary.

The best deals on them can be found in:

1. Credit Europe Bank
2. Tempbank
3. International Bank of St. Petersburg (IBSP)
4. Prime Finance Bank
5. Orient Express Bank.

Detailed conditions are presented on the official websites of these companies.

If you were planning to invest euros, then you will find the most attractive conditions in:

• Tempbank
• Prime Finance
• YAR-Bank
• BBR Bank
• Cibas bank

Opening a foreign currency deposit in an unstable economy is a wise decision for anyone who wants to preserve their savings and also receive additional income. Typically, the rates on such programs are quite low, but the income from this type of investment is much more profitable than from deposits in rubles.

If you need an account for regular transactions, then we advise you to get a bank card. With its help, you can receive and send transfers, pay payments and purchases, and withdraw cash.

Offers the most attractive conditions

Transactions on foreign currency accounts are reflected in accounting on the basis of statements from the credit institution and monetary settlement documents attached to them.

Opening a foreign currency account in a Russian bank

To open a foreign currency account in a Russian bank, as a rule, you need to submit to the bank the same documents that are needed to open a current account and a certificate from the bank in which the current account is opened.

Opening a foreign currency account involves opening other accounts to record transactions with foreign currency.

As a rule, it assumes that the bank will establish:

• current currency account – for accounting for foreign currency that is at the disposal of your company;
• transit currency account - for crediting received foreign currency earnings and other payments in foreign currency;
• special bank foreign currency account - for crediting foreign currency that the bank buys on your order.

From May 2, 2014, companies must not inform the tax office about the opening or closing of a foreign currency account (Article 23 of the Tax Code of the Russian Federation as amended by Law No. 52-FZ of April 2, 2014).

Opening a foreign currency account outside Russia

Residents of the Russian Federation open without restrictions accounts (deposits) in foreign currency and the currency of the Russian Federation in banks located outside the territory of the Russian Federation (Clause 1, Article 12 of the Law of December 10, 2003 No. 173-FZ “On Currency Regulation and Currency Control” ).

Exceptions are provided for by Law No. 79-FZ of May 7, 2013 “On the prohibition of certain categories of persons from opening and having accounts (deposits), storing cash and valuables in foreign banks located outside the territory of the Russian Federation, owning and (or) using foreign financial instruments." These are persons holding a number of government positions and their spouses and minor children.

The tax inspectorate must be notified of the opening (closing) of bank accounts outside the Russian Federation or changes in the details of foreign currency accounts. This must be done within a month according to the approved form (clause 2 of article 12 of Law No. 173-FZ). The format of the notification in electronic form was approved by Order of the Federal Tax Service of Russia dated November 14, 2013 No. ММВ-7-14/502@, the form of notification on paper was approved by Order of the Federal Tax Service of Russia dated September 21, 2010 No. ММВ-7-6/457@.

For being late or submitting a notification in an unspecified form, a fine for the organization is provided in the amount of 50,000 to 100,000 rubles, for failure to submit a notification - in the amount of 800,000 to 1,000,000 rubles. For the same violations, fines are provided for officials in the amount of 5,000 to 10,000 rubles and from 40,000 to 50,000 rubles, respectively (clause 2, 2.1 of article 15.25 of the Code of Administrative Offenses of the Russian Federation).

To open a foreign currency account outside Russia, you should familiarize yourself with the requirements of the bank of the country in which you want to open an account.

You can easily open an account in a country that is a member of the Organization for Economic Co-operation and Development (OECD) or the Financial Action Task Force (FATF). In other cases, you will first have to register the fact of opening an account with your tax office.

Include the fee for opening a foreign currency account as part of other expenses:

DEBIT 91-2   CREDIT 51
– paid for the bank’s services for opening a foreign currency account.

How to organize accounting for account 52

To correctly account for foreign currency transactions in account 52, you can open subaccounts:

• 52-1 “Currency accounts within the country”;
• 52-2 “Currency accounts abroad.”

For subaccount 52-1, open subaccounts of the second order (based on the foreign currency accounts that the bank opened for you):

• 52-1-1 “Current foreign currency account”;
• 52-1-2 “Transit currency account”;
• 52-1-3 “Special bank account”.

You can open accounts in various currencies (US dollars, euros, etc.). Consider transactions for each type of currency separately.

Purchasing foreign currency

The procedure for recording transactions related to the purchase of currency depends on the purposes for which it is purchased.

Currency can be purchased:

• to pay for an import contract;
• for other purposes (payment of travel expenses, payment of wages to employees of a foreign mission, etc.).

The purchase and sale of foreign currency is carried out only through banks, and not all banks can buy and sell currency, only those that have permission to do so.

Selling foreign currency

Foreign currency can only be sold through authorized banks (Part 1, Article 11 of Federal Law No. 173-FZ of December 10, 2003).

Authorized banks are considered to be banks or banking institutions that are vested with certain powers to carry out certain banking transactions.

Previously, part of the proceeds received in foreign currency had to be sold without fail.

Now the requirement for the mandatory sale of part of foreign currency earnings has been canceled, so the company can sell it only on a voluntary basis.

Write off the amount of currency funds allocated for sale using the following entry:

DEBIT 57   CREDIT 52-1-1 (52-1-2)
– currency funds are sent for sale.

Funds received from the sale of currency are credited to the current account. For the amount of these funds, make the following entry:

DEBIT 51   CREDIT 91-1
– funds from the sale of currency are credited to the current account.

Record the write-off of the sold currency with the following entry:

DEBIT 91-2   CREDIT 57
– the sold currency is written off.

Record all expenses associated with the sale of currency (for example, remuneration paid to the bank):

DEBIT 91-2   CREDIT 51 (52, 57)
– expenses for the sale of currency are reflected.

At the end of the month, reflect the financial result (profit or loss) from the sale of currency. As a rule, it arises due to the fact that the rate at which the bank sells the currency differs from its official rate. To do this, make an entry in your account:

DEBIT 91-9   CREDIT 99
– profit from the sale of currency is reflected

DEBIT 99   CREDIT 91-9
– loss from the sale of currency is reflected.

The loss from the sale of currency reduces the taxable profit of the organization (clause 6, clause 1, article 265 of the Tax Code of the Russian Federation).

Unsold foreign currency earnings are subject to credit to the current foreign currency account.