According to the agency’s information, the project aims to improve the regulatory framework relating to cash payments by “increasing transparency, efficiency and taking into account best practices”.
Logos Press reported about these plans of the government earlier. They were announced in connection with the rejection of parliamentary initiatives to partially abolish, adjust the law and increase the current limits.
What the deputies proposed
The deputies proposed to adjust the Law on cash payments to eliminate barriers to the purchase of real estate and reduce the problems faced by entrepreneurs in their activities in the context of the current restrictions. Another deputy’s draft suggested a triple increase in the limits and easing the banks’ requirements regarding the origin of the money.
Why the initiatives were not supported
The government justified the rejection of these proposals for several reasons, including partial retroactivity, which contradicts the Moldovan Constitution.
As explained in the conclusion, in general, cash payments allow understating income, evading taxes and can create favorable conditions for the shadow economy. In particular, the increase of limits may reduce the effect of detecting discrepancies between presumed and declared income, in accordance with Art. 260 of the TC.
At the same time, the current regulatory framework today allows applying precautionary measures depending on the identified risks. And in the absence of data on the origin of money, the decisions taken by reporting units may create serious risks for them in the context of the responsibility imposed on them.
