New Rules for Money Transfers in Russia as of May 30, 2025: What Has Changed for Individuals and Businesses

Since late May 2025, significant changes to money transfer regulations have come into effect in Russia, aimed at strengthening control over financial transactions and combating illegal schemes. These changes affect ordinary citizens, entrepreneurs, freelancers, and self-employed individuals alike. In this article, we will break down all the key changes, their implications, and provide practical recommendations on how to adapt to the new requirements.

Key Changes in Money Transfer Legislation

As of May 30, 2025, Russia has implemented Federal Law No. 522-FZ dated December 28, 2024, which introduced major amendments to Law No. 115-FZ “On Combating Money Laundering and Terrorist Financing.” This regulatory act significantly expands the authority of Rosfinmonitoring (Russia’s financial monitoring service) and tightens control over financial transactions by individuals and legal entities.

Key changes include:

1. A 100,000-ruble limit for transfers under simplified identification. Previously, only a lower threshold for verification existed—15,000 rubles—with no upper limit. Now, transfers between 15,000 and 100,000 rubles undergo simplified verification, while amounts exceeding 100,000 rubles require full identification of both the sender and recipient.
2. Introduction of temporary card blocking for up to 10 business days (and in some cases up to 30 days) if suspicious transactions are detected. This allows Rosfinmonitoring to respond quickly to potential money laundering schemes.
3. Increased scrutiny of regular transfers between individuals, especially if the transaction volume does not match the recipient’s declared income.
4. Banks are now required to report suspicious transactions to Rosfinmonitoring and the Federal Tax Service (FTS), enhancing coordination between regulatory agencies.

It is important to note that the new rules do not impose a tax on all card-to-card transfers between individuals—a common misconception that the Federal Tax Service has already debunked. Taxation applies only to transfers that constitute income (payment for goods, services, or work), not personal transfers between individuals.

How the New Rules Affect Different User Groups

1. For Ordinary Citizens

Most everyday transfers between individuals remain unaffected – they are still able:

• Transfer money to family and friends without amount restrictions (when using bank accounts).
• Receive gifts and repay debts without tax consequences.
• Use the Faster Payments System (FPS) for transfers without additional checks.

However, it is necessary to note that:

1. Transfers without opening an account (e.g., via terminals or unverified e-wallets) are now limited to 100,000 rubles per transaction. Larger amounts require full bank identification.
2. Frequent large transfers from the same sender may attract regulatory attention, especially if they do not match your declared income.
3. Receiving money from unknown parties carries a risk of involvement in fraudulent schemes, which could lead to temporary card blocking.
4. For Freelancers and the Self-Employed

The new rules are particularly relevant for those receiving payments for services directly to their cards without formal contracts. As of June 1, 2025:

• Regular payments from the same clients with notes like “for work” or “for project” may be classified as income subject to personal income tax (NDFL).
• Transfers from companies or sole proprietors without a contract carry a high risk of being flagged as undeclared income.
• Frequent one-time transfers from different people (even small amounts) without clear purpose may raise questions from tax authorities.

Experts recommend freelancers and the self-employed:

1. Obtain official status (self-employed or individual entrepreneur) to reduce risks and simplify operations.
2. Sign civil-law contracts (GPC agreements), especially when working with businesses.
3. Use specialized payment platforms (e.g., WinWork) that automate documentation.
4. Avoid payment descriptions that imply commercial transactions.
5. For Businesses and Entrepreneurs

Companies working with freelance contractors should note:

1. Paying freelancers without contracts now carries higher risks—such transactions may be blocked, and companies may face tax inquiries.
2. Verify the status of contractors (self-employed, individual entrepreneurs) before making payments.
3. Consider using platforms that automate contract signing and payments (e.g., WinWork).

Tax Implications: What Is Subject to personal income tax (NDFL)

The Federal Tax Service has clarified that not all person-to-person transfers are taxable. Only income-related payments are subject to tax:

• Payment for goods, services, or work
• Regular transfers resembling undeclared salary
• Income from property sales
• Fees under civil-law contracts

Tax-free transfers include:

• Gifts from individuals (up to 10,000 rubles per year)
• Transfers between close relatives (spouses, parents, children, siblings)—no amount limits
• Debt repayments (with proof)
• Charitable aid

Tip: If receiving funds that could be considered income, specify the purpose (e.g., “gift,” “debt repayment”) to avoid issues with banks or tax authorities.

Practical Tips to Avoid Transfer Problems

1. For large transfers (>100,000 rubles), use fully identified bank accounts—not anonymous e-wallets or account-less transfers.
2. For business activities, register as self-employed or an individual entrepreneur and use contracts to prevent tax disputes.
3. Keep records of transactions: correspondence, contracts, invoices, receipts.
4. Avoid suspicious activity—do not accept payments from strangers or participate in cash-out schemes.
5. Monitor limits: 100,000 rubles for simplified ID transfers; no limit for fully verified accounts.
6. Specify transfer purposes clearly to simplify verification if needed.

Future Regulatory Trends

Experts note that tighter controls on money transfers are a global trend to combat money laundering and tax evasion. In Russia, further changes may include:

• Stricter oversight of regular person-to-person transfers
• Enhanced data sharing between banks and tax authorities
• Growth of platforms facilitating legal freelance arrangements

However, a blanket “transfer tax” (a percentage of transaction amounts) is unlikely in the near term, as it could harm the economy by increasing shadow transactions and reducing trust in the banking system.

The new money transfer rules effective May 30, 2025, aim to increase financial transparency and combat illegal schemes. While they do not tax all card transfers (as some mistakenly believe), they significantly strengthen scrutiny of suspicious activity.

The key advice for all users is to prioritize transparency: formalize business activities, use contracts, specify payment purposes, and keep documentation. This not only minimizes regulatory risks but also ensures more predictable and secure financial operations