MOSCOW, March 22 - RAPSI. Businessman Alexander Shokhin has proposed an amnesty for funds held by Russian nationals in foreign banks in contravention of the law.

"We should promote the de-offshorization of our economy; the time is right for this," Shokhin, head of the Russian Union of Industrialists and Entrepreneurs, said when commenting on the issue of accounts with Cypriot banks. "We could even announce an amnesty for those who have not notified the authorities about their [foreign] accounts," he said.

In accordance with Russian legislation, Russian residents must notify the authorities about opening or closing accounts with foreign banks. Civil Code provisions on harsher punishment for violating this procedure came into force in February 2013 and stipulate a fine of 75% to 100% of the income from these accounts.

"People opened these accounts long ago and have definitely received considerable income from these transactions. We should postpone the introduction of harsh measures at least by a few years," Shokhin said. "This could encourage them to repatriate their capital. Russian legislation is not as tough as many think."

Cyprus' financial system, one of the world's largest offshore havens, has been threatened by the Cypriot parliament's Tuesday decision to introduce a one-time tax on deposits with local banks in accordance with the EU's bailout conditions. The Cypriot authorities have also been discussing ways to prevent a default with Russia and the EU.