Bank of Russia amends decision on mode of C-type accounts

The Bank of Russia Board of Directors amended the decision¹ on the mode of C-type accounts. The changes are aimed at minimising risks of improper using by dishonest foreign creditors of certain arguments for writing off funds and securities from such accounts.

This eliminates the possibility for transferring funds between C-type accounts of various persons and writing off/crediting securities held in C-type accounts (sub-accounts), between such accounts (sub-accounts) when the relevant transaction entails a transfer of rights to such securities. However, there is still the possibility for transferring funds between different C-type accounts owned by the same person.

It is not possible to purchase corporate securities of Russian issuers, which are publicly placed (traded) in on-exchange trading using funds in C-type accounts, unless there is the relevant permit issued before 29 March 2024 inclusive.

In addition, the provisions on a clearing C-type bank account and a trading C-type bank account are excluded from the decision on the mode of C-type accounts due to the absence of practical relevance.

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