Notaries may be required to verify money transfers in mediation agreements

To verify mediation agreements, it was proposed that notaries be required to request from banks data on the transfer of funds under loan agreements. A bill with such an initiative contributed for consideration by the State Duma of the Government of the Russian Federation.

The Cabinet of Ministers noted in the explanatory note to the bill that Rosfinmonitoring recorded cases of the use of mediation agreements for transit movement and cash withdrawal. To stop this practice, the government proposed making it mandatory to obtain a certificate from the bank stating that the borrower actually received money. Notaries will have to send requests to the bank to verify the certificates. Credit organizations will have to respond within three working days, the bill specifies.

“A credit institution is obliged to reflect all completed operations and other transactions in databases on electronic media <...> not less than five years <...> and provide access to such information as of each trading day. IN <...> In case of reorganization of a credit institution, its rights and obligations are transferred to the legal successor,” the Cabinet of Ministers added.

The explanatory note also clarifies that the composition of the information for a notarial request to the bank and the form of the response will need to be established by the Bank of Russia. If adopted, the law will come into force 180 days from the date of official publication.

Legal entities and individuals can enter into mediation agreements after an out-of-court settlement of a dispute with the participation of a mediator. Such agreements are used to resolve disputes in economic and labor activities, as well as between family members. In the fall of 2019, Russia allowed the use of mediation agreements certified by a notary as an executive document for forced collection of debt.