Banks will be able to know everything about their clients

13.08.2014

Central bank of Russia proposed the Bill, according to which banks will be able to know about the level of income of their potential borrowers.

The Bill proposes to make accessible to the banks information on the income, which is submitted to the Revenue Service and to the Pension Fund of Russian Federation.

Information on the clients’ income, gained by the bank, shall be covered by the bank secrecy, and therefore, it still will be protected from getting into the free circulation.

However, there is a lot of questions that shall be regulated: forms of cooperation between banks, FNS and Pension Fund, also there is the question of the time frame in which state services shall answer the requests from financial institutions.

Source: http://www.rg.ru/2014/08/12/dohodi-site.html

Expert’s opinion

Actually, there are a lot of questions. At minimum, it is not clear whether the consent of the client will be required in order to obtain such information. Also, the financial side of the issued is interesting – will it be free for the bank to make such requests?

Anna Shevchenko ( Lawyer, Honest & Bright)