President Vladimir Putin signed a set of bills introducing controls on personal spending by government officials. According to the new law, the controls will apply to “purchases of land or other real estate property, vehicles, securities and stocks, if their amount exceeds the income of the purchaser and his or her spouse for the three years immediately preceding the transaction.”
Officials will have to declare not only their own spending, but also the spending of their spouses and underage children. The source of funds for the acquisition of any property will need to be justified. Failing to do so will result in the official being fired and the property confiscated.
The law also introduces criminal liability for failure to pay a fine that is envisaged as the main punishment for officials unable to prove the legality of their property acquisition. Penalties include house arrest or community service, with no jail time stipulated in this case.
The new provisions will go into effect on January 1, 2013, and they will apply to transactions entered into in 2017. When filing tax returns in April 2013, officials will have to declare not only their 2017 income, as usual, but also their expenses during that period.
The new law will apply to parliament deputies, senators, government ministers and regional and municipal officials, as well as to Central Bank and Pension Fund employees. According to Vladimir Vasilyev, deputy Duma speaker and head of the United Russia faction in the Duma, the amendments will affect almost 10 million people.
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