Russian banks face hurdles issuing tourist cards for foreigners
Russian financial institutions are encountering significant obstacles in issuing what has been described as a “tourist card.” This card would allow foreigners to open accounts remotely and make payments while traveling within Russia. Coverage in a major newspaper frames the issue as a current “News” item, citing a letter from the Association of Russian Banks (ARB) addressed to the Central Bank.
Although the tourist card framework was enacted six months ago, there remains a lack of clear interpretation. The publication highlights that the law defines the term foreign financial institution in a way that impacts customer identification differently depending on the reading. This ambiguity leaves banks uncertain about their potential foreign counterparties and how they may legally cooperate. According to the ARB letter, banks are unsure which foreign entities qualify to engage in business with Russian banks under these rules.
Elena Gladysheva, a practicing lawyer, notes that the broad definition could encompass a wide range of finance-related activities, increasing uncertainty for lenders and service providers alike.
Roman Gareev, an associate professor at REU, cautions that banks might bear responsibility for approving cards for undesirable individuals if the criteria are interpreted too broadly. The Central Bank has clarified that a foreign financial institution is a company registered abroad that is authorized to offer financial services.
A representative from the industry points out that finding willing foreign partners is challenging. Collaboration with a Russian bank requires compliance with Russian law, potentially triggering secondary sanctions in some cases. Alexey Voylukov, Deputy Governor of the Asian Development Bank, emphasizes this risk, noting the delicate balance between enabling cross-border financial activity and adhering to international restrictions.
At present, the tourist card operates in a test mode. A full-scale rollout is anticipated by the end of 2024, with the aim of expanding convenient, cross-border financial services for travelers and residents alike.
In the meantime, officials from Crimea have discussed potential alternatives to the SWIFT system as part of broader efforts to ensure resilient payments and settlement channels. This discussion reflects ongoing moves toward creating independent payment infrastructure that can operate under evolving geopolitical conditions.
Earlier steps in this direction included joint initiatives between Russia and Türkiye to explore new payment arrangements, signaling a broader push to diversify settlement pathways and reduce reliance on traditional international networks.