New Rules for Money Transfers Effective June 1, 2025
Starting June 1, 2025, Russia will implement legislative changes aimed at strengthening control over personal money transfers. These measures primarily target money laundering and fraudulent schemes using financial “mules.”
- The right of Rosfinmonitoring to request the suspension of operations.
The amendments mainly affect Federal Law No. 115-FZ “On Combating Money Laundering and Terrorist Financing.” The key change grants Rosfinmonitoring (Russia’s financial monitoring service) authority to require banks to suspend suspicious client transactions for up to 10 days. When information comes from foreign competent authorities, this period may be extended to 30 days.
- Combat against “drops”.
These new powers specifically combat so-called “drops” – individuals whose bank cards are used to cash out and transfer illegally obtained funds. The banking sector identifies several types of such participants: “transit operators” who transfer money as directed by scheme organizers, “loaders” who receive funds through ATMs, and “cash-out specialists” who physically withdraw the money.
- What transactions will not be blocked.
It’s important to emphasize that ordinary citizens making routine transfers between their own accounts or sending money to family and friends won’t face increased scrutiny from regulators. Suspensions will only apply when there are specific suspicions of illegal activity.
- Taxation of transfers.
Regarding taxation of transfers, no changes have been made. As before, personal income tax (PIT) only applies to amounts constituting recipient income – payments for goods, services, or property sales. Non-commercial transfers between individuals, including gifts and loans, remain tax-exempt. This was confirmed by Russia’s Federal Tax Service in its February 11, 2025 clarification.
Further tightening of controls is expected. Starting September 1, 2025, a 48-hour withdrawal restriction will apply to newly issued virtual cards. Limits are also being considered on the number of cards one person can obtain – no more than 5 per bank and 20 across different credit institutions.
To protect legitimate customers’ rights, an appeals process for erroneous suspensions has been established. Those facing unjustified transaction blocks can file a complaint with Rosfinmonitoring, and if unsatisfied with the decision, may pursue judicial recourse.
Financial market experts note the new measures won’t lead to mass account freezes for ordinary citizens. Their purpose is to disrupt organized crime groups using financial mules for money laundering. Experts stress that banks and regulators already possess sufficient tools to detect suspicious transactions, with these changes serving as supplementary rather than primary control mechanisms.
