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Russia introduces amendments to anti-corruption legislation regarding the submission and verification of income information

Russia issued Presidential Decree No. 431 of September 19, 2017 "On Amendments to Certain Acts of the President of the Russian Federation for the Purpose of Strengthening Control over Compliance with Anti-Corruption Legislation", which provides for the adjustment of a number of regulatory legal acts with regard to the submission of information on income, its verification, and other control within the framework of anti-corruption activities.

The most notable of the changes introduced was the addition of the form of the certificate, according to which employees and citizens entering the service submit information on income, expenses, property and property obligations. Now, another section has been added to the certificate - "Information on immovable property, vehicles and securities alienated during the reporting period as a result of a gratuitous transaction". This section contains information on the type of property alienated gratuitously, the purchaser of the property under the transaction, and the type of the alienated property.

At the same time, the application of this provision in practice has already raised a number of questions for state bodies, in particular, it remains unclear whether citizens applying for positions in a state body should submit such information.

In accordance with the norms of the current legislation, the section of the certificate "Information on Expenses" (i.e., in fact - on compensated transactions) is not filled in by citizens applying for positions. It seems logical that information on gratuitous transactions should not be requested from citizens either.

On the other hand, there may be situations when, before entering the service, a citizen deliberately gets rid of the property belonging to him, for example, transfers a controlling interest in an enterprise to his relative, with the understanding that in the exercise of his powers as a public authority he will make certain managerial decisions in relation to this organization, for example, on the implementation of public procurement of products manufactured by it. Accordingly, the adoption of such decisions may be made in the form of a certificate.

In addition to changing the form of the certificate, the Decree clarifies the powers of the human resources departments of state bodies for the prevention of corruption offenses, namely:

  • that the verification of information submitted by citizens shall be carried out in the part related to the prevention of corruption offenses;
  • that in the course of analyzing the information submitted, the unit may interview citizens and employees, listen to their explanations, and obtain information from other bodies and organizations on their compliance with the requirements for official conduct.

Указ также уточняет содержание мотивированных заключений, подготавливаемых указанными подразделениями, на (1) поступившее заявление бывшего служащего о получении согласия комиссии на заключением им трудового, гражданско-правового договора с коммерческой или некоммерческой организацией, отдельные функции управления которой входили в его должностные обязанности, (2) уведомление организации о заключении такого договора с бывшим служащим, (3) уведомление служащего о возникновении личной заинтересованности, которая приводит или может привести к конфл

The Decree also grants authority to the Presidium of the Presidential Council on Combating Corruption to consider notifications from commercial or non-commercial organizations about the conclusion of a contract with a former employee - with respect to persons who have held government positions and certain categories of federal civil service positions. In addition, the deadlines for consideration of applications and notifications received by the Presidium of the Council have been increased, and the content of motivated reviews has been clarified.

Another important change introduced by the Decree was the expansion of the list of officials empowered to send requests to credit organizations, tax authorities and bodies carrying out state registration of rights to immovable property and transactions therewith, when carrying out inspections for the purpose of combating corruption. This list now also includes:

  • heads of territorial bodies of federal state bodies specifically authorized by the head of the federal body;
  • prosecutors of constituent entities of the Russian Federation, prosecutors of specialized prosecutor's offices equated to them;
  • heads of the main investigative directorates and investigative directorates of the Investigative Committee of the Russian Federation in the constituent entities of the Russian Federation and specialized investigative directorates and investigative departments of the Investigative Committee of the Russian Federation equal to them.

At the same time, this list is still limited and causes a number of difficulties in applying the relevant provisions of the legislation in practice, especially in the regional context. Thus, at the level of the constituent entities of the Russian Federation, the authority to send requests in the course of inspections is vested in the highest officials (heads of the highest executive bodies of state power) of the constituent entities, heads of the legislative (representative) bodies of state power of the constituent entities or their deputies. For ordinary employees of anti-corruption organizations, the authority to send requests is vested in the heads of the legislative (representative) bodies of state power of the constituent entities.

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