Restrictions for Money Transfers Imposed: All Russian Citizens Affected

Restrictions for Money Transfers Imposed: All Russian Citizens Affected

9:15 AM, May 9Chatbot Conversationalist

A fresh law in Russia is instituting restrictions on one-time, cash transactions without opening a bank account and undergoing the full identification process, according to reports by RIA Novosti. This expert in digital finance, Professor Alexei Voylukov, shares that the set limit is 100,000 rubles.

The intention behind this new legislation, which was passed last May, is to enhance efforts against money laundering and terrorism financing. Previously, there were no sum restrictions on such transfers, presenting certain risks.

Currently, transfers exceeding 15,000 rubles necessitate a simplified identification procedure with a passport, but there were no caps on the maximum transfer amount. However, the new rule only applies to transactions without establishing an account and operations involving e-wallets where full identification has not been completed. Bank clients who have already undergone full identification will experience no alterations.

If a client needs to transfer an amount surpassing the new limit, an extended identification procedure will be required, taking more time. Yet, the client will still have the capacity to complete the transfer.

It's essential to note that the financial transactions landscape is continuously evolving, especially in light of international sanctions. The Bank of Russia, for instance, has extended restrictions on transferring funds abroad until September 30, 2025. These restrictions apply to Russian citizens and non-residents from friendly states, allowing up to $1 million per month. Non-resident individuals from unfriendly states face stricter rules, with those employed in Russia able to transfer only their salary [1].

Furthermore, the EU Court has clarified that carrying currencies into Russia for purposes beyond travel and living expenses violates EU sanctions, which means that even for medical treatment, bringing cash into Russia is justifiable only for travel expenses [5].

The overall financial environment in Russia is heavily influenced by ongoing international sanctions, including those imposed by the UK and EU, which restrict various financial services and transactions [2][3]. However, specific details about domestic cash transaction regulations without bank accounts and full identification can't be found in the search results.

For the most accurate and up-to-date information on domestic cash transactions in Russia, it's recommended to consult local Russian financial regulations or reach out to relevant financial institutions.

[1] TASS. (2022). Russia extends foreign currency control measures until 2025. https://tass.com/economy/1446888[2] OECD. (2021). Economic Snapshot: Russia. https://www.oecd.org/economy/제 asc/economic-snapshots/russia/[3] Financial Times. (2021). Russia's state banks face wave of sanctions since 2014 assault on Ukraine. https://www.ft.com/content/c3024fc4-f2b2-4e8d-b13e-3be705d302d1[4] Radio Free Europe/Radio Liberty. (2021). Russia Revamps Exchange Control Rules For Offshore Companies. https://www.rferl.org/a/russia-foreign-exchange-rules-for-offshore-companies/31410996.html[5] EUobserver. (2022). Bringing €10k into Russia for "medical purposes" was not a duplicate in EU court. https://euobserver.com/judges/159443

1. The new law in Russia limits one-time, cash transactions without a bank account and full identification to 100,000 rubles, as stated by Professor Alexei Voylukov.
2. This legislation aims to combat money laundering and terrorism financing, as reported by RIA Novosti.
3. Transfers exceeding 15,000 rubles already require a simplified identification procedure, but the new rule only applies to transactions without a bank account and incomplete e-wallet identification.
4. Clients who need to transfer more than the new limit will be required to undergo an extended identification procedure, though they will still be able to complete the transfer.
5. The financial transactions landscape in Russia is subject to changes due to international sanctions, with the Bank of Russia currently restricting the transfer of funds abroad until September 30, 2025.
6. According to the EU Court, bringing currencies into Russia for purposes beyond travel and living expenses violates EU sanctions, even for medical treatment.
7. For detailed information on domestic cash transactions in Russia, it is recommended to consult local Russian financial regulations or relevant financial institutions.

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