An inspection
by a regulator:
the first steps

Law No. 248-FZ speaks not simply of inspections but of control (supervisory) measures. Some involve interaction with the inspected party: an inspection visit, a raid inspection, a documentary inspection, an on-site inspection and others. Others, such as an on-site survey, take place without such interaction (Article 56 of Law No. 248-FZ).

Measures may be scheduled or unscheduled. Unscheduled measures are carried out only on the grounds named in the law: for example, where there is information that harm has been caused or that there is a threat of harm, on the instructions of the President or the Government, or at the demand of a prosecutor (Article 57 of Law No. 248-FZ).

Not every inspection is conducted under this law. Tax audits are conducted under the Russian Tax Code (Chapter 14 of the Russian Tax Code), prosecutors’ inspections under the law on the prosecutor’s office, and pre-investigation checks under the Russian Code of Criminal Procedure. Before relying on your rights, find out which law the inspectors are acting under.

A measure involving interaction is carried out on the basis of a decision by the regulatory authority (Article 64 of Law No. 248-FZ). The decision specifies the type of measure, the object of control and the inspected party, the grounds, the inspectors and experts, the list of control actions, and the date and duration of the measure. What is worth checking on the spot:

The law lists gross violations: for example, carrying out an unscheduled measure without the mandatory approval of the prosecutor’s office. A decision taken on the results of a measure carried out with a gross violation is subject to cancellation (Article 91 of Law No. 248-FZ). Any violations you notice are worth recording in writing straight away.

The rights of the controlled person are listed in Article 36 of Law No. 248-FZ. An organisation or entrepreneur is entitled to:

You can also act during an inspection through a representative, for example a legal adviser or a lawyer with a power of attorney.

There is also an obligation: not to interfere with a lawful inspection. Obstructing the lawful activity of an official of a regulatory authority is an administrative offence (Article 19.4.1 of the Russian Code of Administrative Offences).

Requesting documents is one of the control actions (Article 80 of Law No. 248-FZ). The inspector sends a request stating which documents must be provided and by when. Documents unrelated to the subject of the measure may not be requested.

Respond to a written request in writing and hand over documents with an inventory: this shows what you provided and when. If you cannot gather everything in time, tell the regulatory authority before the deadline expires and explain why.

Staying silent in response to a request is risky: failure to provide information that the law requires you to provide may lead to administrative liability (Article 19.7 of the Russian Code of Administrative Offences). If a document does not exist or is not relevant to the inspection, say so in your reply.

Following a measure involving interaction, an inspection report is drawn up (Article 87 of Law No. 248-FZ). If violations are found, the report states which requirement has been breached and what supports this. The inspected party is given access to the report, including in electronic form.

If you disagree with the findings, set out your objections in writing: which findings you dispute, why, and which documents support this. A position stated straight away and backed by documents will also be useful on appeal.

If violations are found, the authority issues a compliance order to remedy them, setting reasonable time limits. If there are signs of an administrative offence, it takes steps to hold the offender liable or passes the information to an authority empowered to do so (Article 90 of Law No. 248-FZ). The fine itself is imposed under the procedure established by the Russian Code of Administrative Offences.

Decisions to carry out measures, inspection reports, compliance orders and the inspectors’ actions can be challenged out of court (Article 40 of Law No. 248-FZ). As a general rule, this procedure is mandatory for organisations and entrepreneurs: they can go to court only after filing a complaint (Article 39 of Law No. 248-FZ).

As a rule, a complaint is filed electronically via the Gosuslugi public services portal. A complaint against decisions and actions is filed within 30 calendar days of the moment you learnt or should have learnt that your rights had been violated; against a compliance order – within 10 working days of receiving it.

In the complaint, state which decision or action you are challenging and what the violation consists of, and attach documents. In it, you can ask for the execution of the challenged decision to be suspended. It is worth bringing in a legal adviser or a lawyer on the day the inspectors arrive, not after receiving the report.