In the course of the development of international economic relations, appropriate developed types of economic relations are being established. Particularly actively expanding financial, currency and credit principles of interaction. They have a number of specific features. To regulate the relations arising in this area, the rules of international financial law are applied. They will be discussed later.
General concept
In the middle of the 20th century, the development of international exchange led to differentiation, as well as the expansion of cooperation between different countries. This was manifested not only in the economic, but also in the cultural, political and other fields. Which, in turn, led to the need to expand the borders of financial international relations.
As a result, special organizations began to appear. Their participants, which were representatives of sovereign states, made commitments in the field of finance, currency and loans. They receive and provide loans at the macro level. This, for example, the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD) and others.
The relations that arise between participants in the international financial system can be of the following types:
- Between international partners that arise in the process of transferring money by one state to another to replenish official reserves of the currency type. This is the provision of foreign currency loans.
- Credit relations that develop when moving at a macroeconomic level of a certain value on the terms of its further repayment. In most cases, interest is also expected to be paid.
- Relations arising between states in the process of implementing actions aimed at supporting the exchange rate of their own currency at the right level. A system of monetary relations between individual states is also being organized.
- Cooperation in the field of taxes. Such relationships arise during activities in the field of tax regulation.
Considering the concept, sources and principles of international financial law, it is worth noting that it is part of international economic law.
Signs, subject and object of currency law
In the course of international monetary cooperation, the relevant rules of international financial law apply. This allows you to establish a framework for an effective balance of forces at the macro level, the effective use of existing world resources.
The subject of international financial law are currency, credit relations arising between partners from different states. Such an interaction is characterized by certain signs:
- The nature of the relationship is necessarily monetary.
- Only sovereign states or organizations created by them enter into interaction.
- Relations arise in the external activities of states.
The object of such interaction is always money. It may also be financial liabilities. Such relationships arise only in the process of the organization's external activities in the performance of global tasks and functions.
Relations in the field of finance arising between states and their representatives (international banks, organizations and funds, other participants) are based on the principles of respect for state sovereignty. They are necessarily interstate, which is expressed in the conclusion of interstate treaties and agreements. But their implementation is attributed to the competence of domestic financial and credit institutions.
Obligations to the international community are reflected in national state budgets, balance sheets and other financial acts within the country.
Sources of law
International financial relations and their legal regulation is based on certain sources of law. In a special sense, from a legal point of view, they include the external form of legal expression, which, in particular, is a legal act. Also, the source may be the expression of law in an external form, which is used to regulate international activities in the field of finance. In this case, its specific features are taken into account.
A significant number of sources are of contractual origin. It should be understood that there are no uniform rules for the implementation of international financial law. The only exceptions are unified contracts and agreements that are at the origins of such interaction.
Also sources are any forms of manifestation of a law of an external nature, as well as public cooperation, which is governed by global regulations in the field of financial activity.
Legal regulation is carried out through the following sources:
- Agreement between foreign partners.
- Acts of domestic law.
- Customs, generally accepted norms of interaction at the global level.
- Judicial and arbitration practice.
- Other doctrines.
They form a complex system of sources of law, which guide the organization of foreign cooperation. Each of its elements is in interaction.
The sources of international law are dual in nature. These may be agreements concluded between different countries, special customs when interacting with foreign partners. But these are also normative acts issued within the state, as well as its judicial practice, customs of financial turnover, etc. At the internal level, the basic principles of interaction with other countries and partners are determined.
System features
Organization of international financial relations is carried out in accordance with some generally accepted norms. The structure of this system includes institutions, sub-institutions. Some of them combine their functions with other structural units of international economic law. At the same time, cooperation in the field of finance is constantly developing. The normative array of this area of interaction is growing.
However, it is in this branch of law that significant gaps are observed, which are a sign of some immaturity, the softness of regulation of relations between foreign partners. This is due to the presence of external debt problems, lack of regulatory principles, inefficiency of multilateral mechanisms, etc.
This system is in close collaboration with other regulatory units. There are certain patterns in the development of relations between foreign partners. Formerly, soft rules of law were gradually tightened. Cooperation takes place on the basis of international treaties. Unilateral regulation is gradually being replaced by bilateral or even multilateral. This allows you to unify procedures in the field of currency law. The method of supranational regulation is applied more and more.
The main operators of international relations in the field of finance are banks. They serve the agreements and contracts of different countries. At the same time, Swiss banks are considered the most reliable. These are financial intermediaries who work with both domestic and foreign currencies.
It is worth noting that legal regulation does not support the interests of all countries equally. The activities of financial organizations, including international and Swiss banks, to a greater extent serve the interests of the Western world. The situation was somewhat changed by the financial crisis that occurred in 2008-2010. After him, a shift was noted towards taking into account the interests of countries of another civilized type. First of all, the situation has improved for developing countries. But in general, financial law at a global level is still far from being highly moral and fair.
System
Existing institutions of international financial law form a certain system. They can be procedural or material, simple and complex. Some institutions relate entirely to financial law at the level of international relations, but there are also mixed forms.
International monetary law has at its core the International Monetary Fund. His right is inherently imperative and universal in large part. In accordance with the basic principles of the IMF, existing standards are drawn up, institutions and sub-institutions are functioning. They can cover a different number of states.
Together with IMF law, the EU's financial standards also function. They have many points of contact. The procedure for establishing relations between different states is ensured mainly by bilateral treaties.
The structure of international financial law includes many financial organizations. They differ in the area of their influence, the features of activity. One of them is also the International Bank for Reconstruction and Development (IBRD). This is a credit institution created by the UN. It contributes to the development of economies of countries that are participants in international trade. The purpose of the IBRD is to stabilize the global economy and prevent deep, prolonged crises. This organization was established simultaneously with the IMF.
IBRD provides long-term loans to developing countries. They always provide a money back guarantee. Credit is granted only to countries that are members of the IMF.
It is worth noting that all the institutions included in the structure of legal financial regulation operate in accordance with general or special rules. These parts of the law cover either all financial relations at the global level, or some of its aspects.
Principles
The development of international economic cooperation is based on special principles. These are general rules that have high legal competence.
Their functions are characterized by consistency, allowing you to play an organizing role. This allows you to maintain law and order. In the field of currency interaction, principles are applied that do not contradict international law. Each of them is a separate institution that contains standards for cooperation in the field of monetary relations between countries.
There are two categories of principles:
- Having material content.
- Functional equations of the method of equation and comparison.
The first category includes principles that have the usual legal or conventional nature:
- State sovereignty in the field of national finance and systems with some exceptions.
- Freedom of payments, settlements on foreign trade.
- Balance of payments.
- Freedom of participation of private representatives in the foreign exchange market of the international level, which is carried out in accordance with the legislation in force within the state.
- The choice of the exchange rate, which is carried out with the norms of the International Monetary Fund.
- The ban on the use of devaluation (change of the exchange rate), which is used in the conduct of competition.
- Freedom of choice of systems for payments and settlements in bilateral relations, which should not harm the global financial system.
- Repayment (return) of external debts of the state.
- Concessional lending to developing countries.
- Joint action to prevent financial crises.
- Guarantees with high financial risks.
- Financial assistance to states in the financial crisis.
- The list of listed principles may be expanded or adjusted. There are exceptions to each of these items.
Second category of principles
The second category of principles of international financial law include specific methods.
Such principles allow foreigners to invade the legal environment of another country. They are used to ensure equality in the implementation of external financial relations. The main principles of this group are:
- Non-discrimination. It is impossible to exempt representatives of one state and impose double taxation on representatives of another state. The principle of non-discrimination also applies to the issuance of credit.
- The provision of the appropriate regime of the nation to which at the moment is most favored.
- The provision of national treatment.
- Preference.
- Reciprocity.
The listed principles can be applied by custom or by agreement. They are combined in different combinations. The presented principles can be applied to the areas of legal relations in a broad or narrow sense. They are actively used in the process of building interaction in international financial relations.
Factors Affecting MFP Development
In the course of the performance by respective organizations, international banks of their functions, a gradual development of private law occurs. Certain factors influence this process. In the modern world there are only three types of them:
- In the process of globalization, increasing the information support of economic relations, the turnover of certain types of goods, services or works has a significant impact. Previously, they did not play a priority role in the world economy. Today, MFPs are largely influenced by information technology, telecommunications, as well as goods, which are determined by mass demand.
- Increasing importance of international labor migration in the field of trade, which is due to social, political, national reasons. Also in this category of factors is the lack of a job market in the country and the possibility of raising education.
- The manifestation of new directions in the field of scientific and technological progress needs to intensify the need for regulation by private law methods. In this area, it is becoming increasingly necessary. This avoids a clash between domestic and foreign legislation. In this case, it is possible to form a single legal basis for fruitful cooperation. At the same time, it is possible to strengthen the rights and interests of the parties in the process of civil exchange.
Tax Collaboration
International financial law applies in various fields of interaction. One of the most interesting is the issue of taxation. Norms in this area of finance are stipulated mainly in the relevant agreements. They can be recorded in other sources. This, for example, may be acts worked out by the relevant departments of international organizations.
In the field of taxation, cooperation between countries occurs in the following areas:
- Identification of key taxation principles.
- Bringing a single standard of legislation in this direction.
- Contributing to the prevention of double taxation, as well as the prevention of tax evasion.
- The procedure for regulating certain rules that apply to offshore and “tax havens” in relevant parts of the world.
- Cooperation, exchange of information and other assistance in the fight against tax offenses.
Double Taxation Prevention
Many countries conclude treaties to prevent tax evasion, as well as their double payment to the budget. Such a document provides a list of territories to which such a regulation applies. A list of taxes that will not be paid by the manufacturer twice is also determined. So, if a Russian resident owns capital or receives income that is taxed in another country, this amount is deducted from the total amount of contributions to the domestic budget. But such a difference cannot be higher than the amount of such tax in our country.