Putin signs law on opening branches of foreign banks in Russia

MOSCOW. Aug 9 (Interfax) - Russian President Vladimir Putin has signed a law permitting foreign banks to open branches in Russia.

The law, published on the official legal information website on Thursday, states that a foreign bank is permitted to open only one branch in the Russian Federation, which must be fully named in Russian, and no more than half of the branch's employees may be foreign citizens. The branches must comply with Russian laws regarding anti-sanctions policy.

A branch of a foreign bank must create and operate an official website in the Russian national domain zone. A respective foreign bank must also have possessed a permit to conduct banking activities in its home country for at least three years and have a credit rating at least at the level established by the board of directors of the Central Bank of Russia in order to operate in Russia. The regulator will publish credit rating levels on its official website.

The Central Bank will have the right to appoint its representatives to the branches of foreign banks. The representatives will be permitted to participate in meetings that concern the management of the branch; receive documents and information from the branch about its banking activities; as well as request information about the transactions and operations that the branch conducts.