Russia expects fines for banks to increase to average of 20 mln rubles for advertising violations - FAS head

SOCHI. Oct 20 (Interfax) - The Federal Anti-monopoly Service (FAS) expects a manifold increase in the average fine imposed on banks for violations of advertising legislation, following planned amendments to the law, as FAS head Maxim Shaskolsky told reporters that the average fine could rise to approximately 20 million rubles.

"We anticipate that fines for these violations should reach up to 20 million rubles on average. We intend to increase them. This work should certainly continue," Shaskolsky told reporters on the sidelines of the conference on tariff regulation in Sochi.

Shaskolsky said that efforts to advance the relevant legislative amendments are set to intensify during the current session of the State Duma.

The fine for violating advertising laws is currently from 100,000 to 500,000 rubles for legal entities, and from 600,000 to 1.6 million rubles for violations in the lending sector. The FAS has been advocating for some time for an increase in the penalties by shifting to turnover-based fines calculated as a percentage of a bank's own capital for credit institutions. The FAS has repeatedly emphasized that the current level of fines is not commensurate with the potential gains that financial institutions derive from their advertising.