Diana Ilikchiev
However, on December 26, 2024, the Parliament decided that the new provisions of the law would come into force from April 1, 2025. Some experts thought it would be advisable to extend the deadline for enacting the law until the end of this year, as such radical measures pose a certain risk during the electoral period. But such a decision was not taken.
The Law “On Cash Settlements” prescribes the rules of its use in economic turnover, sanctions for its non-fulfillment and in general orientation towards non-cash settlements in economic activity. Its provisions apply to legal entities and institutions (except budgetary ones), individuals engaged in entrepreneurial activities and professional activities in the field of justice/health care, as well as individuals engaged in transactions with real estate or vehicles.
According to the document, the maximum amount for cash settlements should not exceed 100 thousand lei per month or per year, depending on with whom and in which area the settlements are made. In case of purchase or sale of real estate or vehicles by individuals, the cash threshold is set at 300 thousand lei.
The last provision became a stumbling block in the process of discussing the document. According to the law, citizens are obliged to prove the origin of money when buying an apartment or a house, if the price indicated in the contract exceeds the equivalent of 100 average monthly salaries in the economy. Due to various reasons and circumstances, many of them do not have such documents.
Therefore, it was decided that individuals will be able to purchase real estate and cars by filling out a Declaration of Liability. By submitting it, they confirm that the funds used in the transaction were obtained from legal sources. The declaration is submitted to the bank and when purchasing a car, if the price of the contract exceeds the equivalent of 50 average monthly wages. At present, the average monthly salary in the economy is set at 16,100 lei. In the following years, the threshold will be lowered. In 2026, when purchasing real estate, it will be 75 salaries, and in 2027 – 50.
The declaration contains information about the individual, the provider of payment services, the nature of the transaction (number and date of the contract, its value, method of payment, etc.) and the beneficiary. When specifying the source of funds, the origin of the funds is briefly described. Including the buyer’s salary, loans, savings, money transfers with a list of supporting documents. If there are no such documents or they cannot be provided, the declarant must provide information on the circumstances of their receipt (in the country or abroad).
However, even these clarifications are insufficient. “It is necessary to clearly define what documents can be considered supporting documents,” says Victoriabank chief accountant Diana Ilikchiev. – Because banks are guided by their internal policy, but the question is to what extent it corresponds to the visions of the State Tax Service. The law does not provide a clear definition in this regard, and it is necessary to avoid problems for both individuals and banks. When a precise list of documents is developed and their statute of limitations is determined, something like a guide, a common vision will emerge”.
She specifies that the declaration under one’s own responsibility can be considered a confirming document, but it is limited and applies only to transactions up to 200 thousand lei. But the funds may be more, and then the question remains.
“Besides, the cash limit of 100 thousand lei per year cumulatively per individual will complicate the activity of companies that work with citizens,” continues Diana Ilikchiev. – This means that the company needs to develop a software to enter data on each individual and keep records of his purchases and settlements. And if it is a network of stores across the country, it is even more difficult to keep such records. It requires a common customer database. Individuals who carry out professional activities will also have questions. For example, when, in addition to a fee, a client pays a notary a state duty. Whether it is included in the limit is not completely clear. The limit of 100 thousand lei is complicated. If they set a limit per transaction, it would be much easier for everyone”.
