Russian authorities will limit money transfers to 100 thousand rubles: conditions named

“If there is a need to transfer serious money abroad, this can be done in advance”

A government commission approved a bill introducing restrictions on money transfers without opening an account. After it comes into force, Russians who have passed only simplified identification will not be able to send more than 100 thousand rubles at a time. The Ministry of Finance is confident that this restriction will reduce the outflow of capital from Russia. Rosfinmonitoring believes that the transparency of operations will increase and facilitate the work of the “competent authorities.”

Amendments limiting the size of money transfers to 100 thousand rubles will be made to the anti-money laundering law and the law “On the National Payment System”. As Rosfinmonitoring emphasized, and it was this department that developed the regulatory act approved by the government commission, the specified amount of funds is the limit for a one-time transaction. If the client needs to transfer a large amount, then full identification will be required, then it will be possible to transfer up to 600 thousand rubles at a time.

According to current legislation, citizens can transfer up to 15 thousand rubles without identification. The restriction on money transfers of 100 thousand rubles introduced by the authorities will affect clients of financial institutions who have undergone simplified personal identification. This is the next stage of verification: it assumes that the person has disclosed his last name, first name, patronymic and passport information to the bank or money transfer system. Such a check can be carried out without the presence of the citizen, using only electronic copies of his documents. Full identification involves not only the appearance of the client himself at a bank branch or money transfer system, but also providing him with additional information, for example, about the purpose of the transaction. Foreigners may be required to provide migration card details and proof of legal stay in Russia.

As Artem Tuzov, director of the corporate finance department at IVA Partners, noted, in the first half of 2023, orders for transferring funds without opening an account amounted to only 0.13% of the volume of all payments in rubles. Such translations are unpopular among citizens and occupy their niche only because they are allowed in principle. For comparison, ten years ago, in 2013, the share of payments without opening an account was larger, but also remained insignificant: it accounted for 0.93% in rubles. “Payment restrictions have already reduced the load on the banking system tenfold,” the expert noted.

The measure under discussion may be most significant for compatriots living abroad and those who frequently make cross-border transfers. However, they still have time to send money before the law comes into force. Consideration of this project at a government meeting is planned on December 22, 2023, and it will be adopted only during the spring session of the State Duma. It will have to come into full force a year after adoption, that is, no earlier than the spring of 2025. “Most of all, the effect of the new law will be felt by Russians working from abroad, as well as those who still have assets in Russia that require transfer to foreign accounts for one reason or another,” says Associate Professor of the Department of Global Financial Markets and Fintech at REU them. Plekhanova Tatyana Belyanchikova. “In addition, there is still time before the new rules come into force, this will not happen until mid-2025, so if there is a need to transfer a significant amount abroad, this can be done in advance.”

In general, the new regulation should improve the lives of citizens, since it is also aimed at combating fraud. “The decision to reduce the limit on transfers without opening a bank account is logical and justified,” says Polina Gusyatnikova, senior managing partner of the law firm PG Partners. “This will make it possible to more effectively combat money laundering and legalization of proceeds from crime. “I don’t see any circumstances that would in any way complicate the lives of law-abiding citizens.” Firstly, the restrictions apply only to the amount of a one-time transfer, and if the amount is more than 100 thousand rubles, no one bothers you to split it into several tranches. Secondly, citizens can undergo full identification and transfer any amounts without restrictions if they really have a need for such operations. But do not forget that amounts over 600 thousand rubles in any case fall under the control of Rosfinmonitoring. Also, the operator who transfers funds can block any operation if it seems suspicious to him, the lawyer warned.