Armenian Banks Collect Data on Russian Citizens with Accounts in Armenia

Armenian banks have begun gathering information on the tax residency of Russian citizens who hold accounts in the republic as part of the first automated information exchange with Russia, reports RBC.

This means that information regarding the income and assets of Russian citizens and companies owned by Russians in Armenia will become visible to the Federal Tax Service of the Russian Federation. The article quotes Sergey Nazarkin, managing partner of NSV Consulting, who indicates that Armenia has become the most popular post-Soviet state for Russians to open foreign accounts.

To avoid penalties, banks are independently determining the tax residency of their clients. Sources in the Armenian financial market have confirmed the receipt of requests from local regulatory bodies. In cases where information is not provided, account servicing will be suspended. Inquiries are being sent not only to personal account holders but also to controlling persons and beneficiaries of companies.

Alexander Nadmitov, managing partner of the law firm Nadmitov, Ivanov and Partners, noted that the Armenian banking system has become a convenient channel for international transactions. Foreign companies are opening accounts in the republic to receive income from exports or to transfer funds for imports.

In 2023, Armenia ratified a multilateral agreement on the automatic exchange of financial information and began corresponding exchanges this year. Russia joined the CRS standard in 2016 and started automatic exchanges in 2018. The Federal Tax Service of Russia has confirmed the list of countries for automatic exchange, including Armenia.