Russia’s Federal Tax Service and Ministry of Internal Affairs to Fight Shadow Currency Exchange

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The Federal Tax Service of Russia (FTS) has instructed the territorial authorities, in cooperation with the police, to identify violations related to the purchase and sale of foreign currency bypassing banks, RBC has reported.

The Federal Tax Service of the country has noted now the currency is being sold through social networks, Telegram channels and multiple other services on the Internet. The service believes this threatens “the stability of the currency of Russia and the stability of the local foreign exchange market.”

The department announced earlier last month it was suspending the inspections of compliance with currency legislation, however, now the Federal Tax Service has clarified this does not apply to currency speculation by individuals.

The cooperation between the Federal Tax Service and the Ministry of Internal Affairs is aimed at “identifying and suppressing the illegal activities of organizations and individuals that evade taxation, including those engaged in illegal business.”