Note on work group operation for proposals geared towards for illegal monetary turnover in the economy of Tatarstan

In accordance with the directive issued by the Cabinet of Ministers of the Republic of Tatarstan(date of issue 16th July, 2012, no. 1184-r) the work group for making proposals to reduce negative effect from illegal monetary turnover in the economy of Tatarstan was set up. This formation was established to promote legal action against breaches of law. Law infringements include monetary means usage from state coffers and illegal monetary turnover. New structure has to present suggestions for legislative improvements on the matter. The proposed measures are to gradually make away with “informal economy” by strengthening control and expansion of various measures and means to combat illegal unlawful financial operations.

Below are the main tasks and aims of the working group:

a) to carry out complex analysis on the state of illegal monetary turnover in the economy of Tatarstan;

b) to spot negative trends on time, making prognosis for ongoing processes in the sphere of “informal economy”;

c) to prepare draft proposals and put them on necessary lists;

d) development of new forms and means of combating those breaches of law that include budgetary means;

e) reveal and destroy unlawful financial schemes;

f) make suggestions to improve legislation in action to further limit the activities in “informal economy”, control reinforcement and expansion of mechanisms to counter unlawful financial operations;

g) participate in drafting projects on coordinated orders, directives, information and other documents which bear organizational function and are issued on the part of ministries, departments and other organizations which are responsible for means and measures system betterment to limit illegal monetary turnover in the economy of Tatarstan;

h) ensuring interaction among territorial units under federal executive branch bodies in the Republic of Tatarstan, executive branch bodies in the Republic of Tatarstan, self-government units in Tatarstan. Organizations responsible for event organization and take part in destroying illegal financial schemes to combat breaches of law with the usage of budgetary means also fall into the list;

i) participate in preparation of materials that have info-analytical character and other materials that contain the results of program realization aimed at reducing illegal monetary turnover in the economy of Tatarstan to further direct them to Russian federation state power bodies in the Republic of Tatarstan.

In compliance with the abovementioned aims and tasks a number of proposals aimed at overall reduction of illegal monetary turnover volume in the economy of Tatarstan have been elaborated. Also the list of organizations that resort to “grey” schemes in transactions in their activities has been presented.

In order to limit the activity of juridical persons that use unlawful financial schemes and to carry out a set of measures to reduce the volume of illegal monetary turnover draft version of federal law “On amending the separate legislative acts of Russian Federation” (then – the law act) has been prepared. While working on it, valuable piece of advice and clear suggestions from Prosecutor’s Office of the Republic of Tatarstan, Court of Arbitration of the Republic of Tatarstan, National Bank of the Republic of Tatarstan, Federal taxation board in the Republic of Tatarstan and from the Ministry of internal affairs of the Republic of Tatarstan have been made use of. Draft version of the above federal law suggests a number of amendments that have to be incorporated into Russian Federation Civil, Tax and Criminal codes. Also it is set to amend the following federal laws: “On state registration for juridical and individual entrepreneurs” (adopted 8th August, 2001, no. 129), “On limited liability companies” (adopted 8th August, 1998, no. 14), “On joint-stock companies” (adopted 26th December, 1995, no. 208), “On combating legalization (laundering) of revenues, that are earned in unlawful way, and financing terrorism” (adopted 7th August, 2001, no. 115).

On 4th October, 2012 this draft version was a main subject under review on Expert council meeting under interdepartment coordination committee on legal matters. As a result, it was decided to submit the draft to the government of Russian Federation for its approval. 

 

Ministry of Justice of the Republic of Tatarstan

Department of Press