Russians to Compulsorily Conduct Bank Transactions for Apartment Purchases Using Banks
Cashless Real Estate Transactions: A Shift in the Russian Market
It seems that the traditional suitcase full of cash to buy an apartment might soon become a thing of the past in Russia.
Legislation proposes a ban on such large cash transactions, with a value exceeding 1 million rubles, according to sources. The bill could be presented to the parliament as early as June or July, potentially taking effect by the end of 2025.
Svetlana Razvorotneva, Deputy Chair of the Construction Committee, highlights the objective behind this move - to make the real estate market more transparent and shield buyers from swindlers. Current estimates suggest that approximately 10-15% of deals are conducted in cash, where the majority of crimes occur. A concerning trend has surfaced over the past year, with instances of unlawful housing deprival rising from 6,000 to 8,000 cases, and damages jumping from 32 to 42 billion rubles between 2022 and 2023.
If enacted, this law would mandate the use of banks or electronic payment systems for purchasing properties, thus phasing out cash transactions. Only official transfers will be permitted. Advocates argue that thismeasure will not only promote traceability offunds but also act as a safeguard against fraud.
Many countries have already adopted this practice, and it appears that Russia is intent on following the trend. Razvorotneva comments, "The time has come for us to move in this direction."
While the specifics of the law are yet to be solidified, it's safe to anticipate a more regulated and secure real estate market in Russia. Stay tuned for updates on this developing story.
- The increasingly strict policy-and-legislation in Russia aims to shift the real estate business towards more finance transparency, with a proposed ban on large cash transactions.
- The proposed governmental ban on cash transactions over 1 million rubles in the real estate sector is expected to drive the use of banks and electronic payment systems in finance, enhancing the overall business transactions.
- The move towards cashless real estate transactions, as part of the general news and politics, is set to bring more security and transparency, and could potentially reduce fraudulent activities in the Russian market.
