Finance & Currency Risk Management
News Index
By Guillermo Alcalá

How to send money transfers to Russia and not die trying

Published July 12, 2017

Sending funds to Russia can be a nightmare for the treasury department. For reasons of domestic currency control, the Russian Central Bank requires all financial institutions that want to send funds to Russia to have a correspondent account with the Russian Central Bank.

More Info
International Payments
Payments Hub

Consequently, all rouble trades must provide the correspondent bank account details, which increases the complexity of payments to Russia and are often cause of payment reversals that generate disruptions to companies’ cash flows.

In this article, we want to let you know which details are mandatory fill in the Kantox Platform to transfer funds to Russia and other not mandatory details that would be highly recommendable to include to assure that the payment is received.

Required details for making payments to Russia

As with any other international transaction, you should include beneficiary name, full address, beneficiary bank name, bank account number and bank code (or BIC). Bear in mind that all Russian names should be entered in Russian language using the Latin alphabet according to the Russian-Latin character chart.

Payments settled inside Russia

  • Beneficiary’s Bank BIK code: An 11-character code, starting with “RU” and followed by 9-digits to identify the Beneficiary’s bank.
  • Beneficiary’s account number held with Russian Central Bank: 20-digit code in which the first five digits are 30101.
  • Beneficiary’s INN Code (Taxpayer’s ID code): 10 digit code for legal entities registered in Russian territory or Beneficiary’s KIO Code in the case of entities that do not pay taxes in Russia.
  • VO code of the currency transaction: The letters VO followed by a 5-digit code established by the Central Bank of Russia to describe the purpose of the payment.
  • Purpose of Payment: A short text explaining the purpose of payment should be included in the “Reference” field of every payment to Russia.
  • Beneficiary’s KPP (Non-compulsory): 9-digit code reporting the reason of taxation prescribed to the taxpayer.

Payments settled outside Russia

  • Bank BIK code of the correspondent bank: An 11-character code, starting with “RU” and followed by 9-digits to identify the beneficiary’s bank.
  • Correspondent bank account number held with Russian Central Bank: 20-digit code in which the first five digits are 30101.
  • BIC code of the correspondent bank: Swift code that identifies the correspondent bank.
  • Bank account number of the correspondent bank: 20-digit code for the beneficiary’s bank in which the first five digits are 30111.
  • VO code of the currency transaction: The letters VO followed by a 5-digit code established by the Central Bank of Russia to describe the purpose of the payment.
  • Purpose of Payment: A short text explaining the purpose of payment should be included in the “Reference” field of every payment to Russia.

 

Other details recommended to smooth out payments

Adding these details in the description field of the payment will help to guarantee that the beneficiary receives the funds.

  • Number and date of the invoice and contract
  • Details of the contract: Name of goods and/or services object of the contract.
  • The contractual method of payment: whether it is a prepayment, second payment or final payment.

Finally, remember that Russian banks only accept payments in rouble (RUB), with no charges for the beneficiary (OUR).

Click on the banner below if you want to talk to an expert now:International payments in 134 currencies

Avatar

Leave a Reply

*