Some Legal Issues of the Type “C” Banking Account Regime

Abstract

This article is devoted to the legal issues of the implementation of special economic measures in relation to bank accounts. The article covers legal issues related to the implementation of mandatory control in the field of opening and maintaining bank accounts of type “C”. The author analyzes the legal issues arising during the implementation of customer identification procedures and reporting to Rosfinmonitoring about operations subject to mandatory control under AML/CFT/FPWMD. Separately, the issues of foreclosure on funds on type “C” accounts in the framework of enforcement proceedings are considered. According to the author, the establishment of the legal regime of the type “C” account based on the decision of the Board of Directors of the Bank of Russia does not entail legal restrictions on the recovery of funds from these accounts in the framework of enforcement proceedings. In conclusion, the author suggests considering the absence of law enforcement and judicial practice, the lack of operational official explanations from authorized bodies, potential contradictions in the provisions of regulatory legal acts of various public authorities as a circumstance mitigating the responsibility of individuals and companies within the framework of compliance with special economic measures.