Russia imposes a cap on single financial transactions
** scoring a major financial shift **
On May 30th, a significant modification rolls out in Russia: cash transfers without a bank account or full client identification will be capped at 100 thousand rubles. Let's delve into what this means for you and your transactions.
As Alexei Voylukov, a digital finance authority, explained to RIA Novosti, this change is part of a law passed last year, intended to curb money laundering and terrorism financing.
What's changing? In the past, large sums could be sent via electronic wallets or unregistered accounts, with just a passport scan. Now, full-blown identification is necessary. Even with simplified verification like a passport, transfers exceeding 100K will no longer bepossible.
Who's unaffected? If you're already banking and have completed full identity checks, carry on with your transactions as usual.
What about larger amounts? You can still transfer them; just expect to undergo a thorough identity verification process. According to Voylukov, this may take a bit longer, but the money should still reach you eventually.
Interestingly, these changes are part of a broader shift aiming to tighten financial oversight in Russia, focusing on transactions hided behind simplified verification methods and digital transfers[1]. Additionally, the Central Bank plans to closely monitor "suspicious" transactions, updating Regulation 375-P to keep tabs on potential links to money laundering and terrorism financing, particularly in digital ruble transactions[5]. The Bank of Russia has also extended restrictions on transferring funds abroad until September 30, 2025, with specific rules applying to individuals or organizations based on their status[1]. Lastly, Russia currently faces additional international sanctions, such as those from the EU and UK, that contribute to the complexity and risk in financial dealings involving Russian entities[2][3].
In short, Russia is stepping up the game to increase transparency and control over financial transactions, both domestically and internationally, with a focus on combating illicit activities like money laundering and terrorism financing.
- Starting from May 30th, cash transfers in Russia without a bank account or full client identification will be limited to 100 thousand rubles.
- Alexei Voylukov, a digital finance authority, revealed that this change is part of a law passed last year aimed at curbing money laundering and terrorism financing.
- Moving forward, full-blown identification will be necessary for transfers exceeding 100K, even with simplified verification like a passport.
- Individuals already banking and completed with full identity checks are unaffected and can continue with their transactions as usual.
- The Central Bank plans to closely monitor "suspicious" transactions and update Regulation 375-P to keep tabs on potential links to money laundering and terrorism financing, particularly in digital ruble transactions, as part of a broader shift towards tightening financial oversight in Russia.
