All about banks in Russia - where and how best to open an account

Opening a bank account in Russia is an important step for conducting financial transactions, whether it is personal savings or running a business. There are many banks operating in the country, each offering its own terms and services. Choosing the right bank can be a difficult task, as it is important to consider not only rates and terms, but also the reliability of the financial institution. In this article we will consider the main Russian banks, their features and tell you where and how best to open an account, so that your choice was favorable and safe.

How to open a bank account in Russia in 2024

Foreign citizens and newly registered companies are required to open bank accounts in Russia for business or financial transactions. They can open a current or savings account, and many banks offer special packages for companies that open corporate accounts. Opening a bank account for foreigners in Russia is possible in rubles, euros or dollars, provided the following documents are available:

• application form provided by the bank;
• valid passport;
• residence permit;
• proof of residence address.

Russian citizenship is not required to open an account, as it may seem at first glance. The main condition is legal entry into Russia or a residence permit issued by the competent authorities. The good news for foreigners planning to move to Russia is that you can open a bank account in some banks before you arrive in the country.

If you are employed by a Russian company, a letter from your employer may be required, but many banks have simplified the process of opening an account by reducing the list of required documents.

Opening a corporate bank account in Russia

All companies operating in Russia, even through branches, are required to open bank accounts. These accounts are mainly used to deposit the company's authorized capital upon incorporation, and compared to current or savings accounts, the requirements for corporate bank accounts are more stringent. When opening a corporate bank account in Russia in 2024, the following documents are required:

• an application of the established sample;
• applicant's passport;
• residence permit, if applicable;
• a certificate from the Russian tax authorities on conducting business activities in the territory of the Russian Federation;
• a statement from the owner of the company confirming the opening of the account.

Foreign entrepreneurs may also appoint Russian lawyers or representatives to open an account on their behalf on the basis of a power of attorney. However, the company director must be present at the Russian bank to fulfill a number of formalities.
In addition, all documents must be translated into Russian by a notary.

Among the new laws introduced in the Russian banking system, some of them concern the possibility of opening a bank account in Russia without the physical presence of the client. In this case, it is assumed that the new client has been identified by a foreign financial institution on behalf of a Russian bank.

Opening a bank account in Russia by a foreigner

Despite the rather strict formalities for opening a bank account in Russia, foreigners can do so if they take into account the requirements set by the chosen financial institutions. Here we list some of them if you want to open a bank account in Russia as a foreigner:

• Your passport must be translated into Russian.
• You must present a migration card - the document you receive when you enter Russia.
• You also need a registration document confirming your place of residence in Russia.

Once you have collected these documents, you must go to the bank to open the relevant account.

Expats need a residence permit to open a bank account in Russia. However, there are financial institutions that can open a bank account for foreigners temporarily residing in Russia. If you are a foreigner in Russia and have a job, your employer can organize the procedure of opening a bank account together with a lawyer.

If you decide to work with a bank in Russia, you should know that you can also apply for a mortgage loan. In some cases, the bank requires a deposit of at least 20%.

Given the new changes in the Russian banking system, the government has approved about 25 countries whose banks can identify their citizens and companies to open bank accounts in Russia and conduct various transactions in the country.

In which banks in Russia can foreigners open accounts?

Foreign citizens can open accounts in most major Russian banks that offer special conditions and services for non-residents. Depending on the bank and service package chosen, it is possible to open both current and savings accounts in rubles, euros or dollars. The best banks for foreign citizens in Russia where you can open an account are:

1. Sber
   One of the largest banks in Russia, Sber offers foreigners the opportunity to open accounts with a minimal set of documents. Here you can choose from different types of accounts, including current and savings accounts, as well as take advantage of convenient online services for managing finances.
2. VTB
   VTB Bank also provides a wide range of services for non-residents, including corporate and personal accounts. VTB is characterized by competitive tariffs and the ability to manage accounts via a mobile application and online banking.
3. Alfa-Bank
   Alfa-Bank offers foreign nationals to open current accounts and take advantage of a wide range of services, including favorable terms on foreign currency accounts and investment solutions. The bank also provides quality support through digital channels.
4. Raiffeisenbank
   Raiffeisenbank actively works with foreigners, offering convenient packages for private clients and businesses. The bank supports accounts in different currencies and provides easy access to international transfers.
5. T-Bank
   This online bank is becoming increasingly popular among foreigners due to its completely remote account opening process. T-Bank offers a mobile-friendly interface and many options for managing finances, including multi-currency accounts.

These banks offer foreigners convenient conditions for opening accounts and provide full access to banking services such as online banking, international transfers and foreign exchange transactions. Choosing a bank depends on your personal preferences, service requirements and rates.

Why an account opening may be refused

Although most major banks in Russia are open to working with foreign nationals, there are certain reasons why an applicant may be refused an account. The main reasons for refusal include:

1. Incomplete or incorrect document package
   One of the most common reasons for refusal is the provision of an incomplete set of documents or an error in filling out the application form. For example, lack of proof of residential address, expired documents, or errors in completing the application can lead to rejection of the application.
2. Lack of legal status in Russia
   Foreign nationals must be in Russia legally, whether on a visa, temporary residence permit or residence permit. If the applicant cannot provide proof of legal status, the bank has the right to refuse to open an account.
3. Lack of proof of income or employment
   Some banks may require proof of source of income or employment, especially if the foreigner plans to open a corporate or foreign currency account. If such documents are not available, the bank may refuse to provide services.
4. Risks associated with know-your-customer (KYC) policies
   As part of the International Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) standards, banks are required to scrutinize their customers. If a bank has suspicions about the transparency of a client's financial transactions, including when dealing with “high risk” jurisdictions, this may be a reason to refuse to open an account.
5. Negative credit history or court cases
   In some cases, a bank may request information about a customer's credit history or legal problems. The presence of overdue debts, court judgments or other financial problems may affect the bank's decision.
6. Ban on banking services for certain categories of persons
   If a foreign citizen is on sanctions lists or his/her activities are related to high-risk industries (e.g. offshore companies or representatives of certain jurisdictions), the bank may refuse to open an account in order to comply with international sanctions and internal policies.

Thus, in order to successfully open a bank account in Russia, it is important to make sure that you have all the necessary documents, comply with the bank's requirements and that your financial activities are transparent.

Assistance in obtaining a residence permit in Russia

Obtaining a residence permit in Russia is a complex and multi-step process that requires careful preparation of documents and compliance with all legal requirements. One World Migration offers professional assistance in obtaining a residence permit, providing its clients with full support at every stage.

Our team of experts helps foreign citizens to understand the rules and requirements, selects the best options for legal residence in Russia, and advises on any questions that may arise. We assist in the preparation and submission of documents, help with the translation of necessary certificates, opening a bank account, and cooperate with migration services to speed up the application process.