Control Over the Allocation of Foreign Capital by Resident Individuals: Global Trends in Russia’s Legislation

This study aims to identify current global trends in financial control over the capital allocation of individuals in various jurisdictions, which are expressed in modern Russian legislation. Individuals more actively participate in cross-border transactions and settlements because of technological progress and digitalization. However, the scholarly legal analysis has not yet exhausted the nature of financial relationships of the various nations with individuals. Using the content-analysis of domestic legislation of several developed countries, I studied the global experience of reporting about different types of assets abroad (e.g., financial accounts, real estate, securities) by resident individuals. Moreover, I examined the world trends in the development of currency restrictions from 1997 to 2017 via the content-analysis of the official documents of the International Monetary Fund, the Organization for Economic Cooperation and Development, and available economic statistics. I paid particular attention to the similarities and differences of these processes in the Russian legislation. In addition, I analyzed the impact of international tax transparency formed during the implementation of international agreements (in particular, the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information). As a result, I concluded that, in Russia, the financial regulation of the obligations of abroad capital owners is mainly influenced by two competing trends: (1) liberalization of foreign exchange regulation in the context of globalization and (2) increased fiscal control over taxpayer operations abroad. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.