Putin bans street currency rate boards
The initiative to impose such a ban was delivered by the Bank of Russia, which position was supported by the State Duma and the Federation Council.
Russian President Vladimir Putin has signed a law amending the current legislation on currency regulation and currency control. In accordance with a document published on the official Internet portal of legal information, the Central Bank received the right to establish mandatory requirements for commercial banks on the procedure for placing data on the rates of foreign currency accepted for exchange.
In February 2018, the Bank of Russia came up with an initiative to impose a ban on placing electronic boards (as well as any other information carriers such as billboards, stands, banners, etc.), which indicate exchange rates outside banks. The Central Bank explained the proposal with the need to toughen the fight against illegal exchangers.
“According to the practice, information about foreign currency exchange rates outside the premises is most often placed by so-called illegal currency exchange points, which are disguised as operating units of an authorized bank,” the representative of the Central Bank’s press service said. At the same time, Ilya Yasinsky, the Deputy Head of the Financial Monitoring and Currency Control Department of the Central Bank, noted that clients are often deceived by remote displays.
In December 2018, the law granting the Central Bank the right to regulate the procedure for posting exchange rates was adopted by the State Duma, and then approved by the Federation Council.
The draft instruction developed by the Central Bank states that information on exchange rates accepted for currency exchange can be placed by banks “only inside the premises in which the authorized bank is located.” However, this requirement does not apply to the placement of exchange rate information in the media, the Internet and mobile applications of banks.