Limits on cash settlements will be introduced in Moldova from January 1, 2025
This is stipulated by the Law on Cash Settlements, which will come into force on that date. Its provisions were discussed during an online event organized by the American Chamber of Commerce in Moldova, entitled “New rules on cash settlements: impact on individuals and legal entities”. According to the National Financial Market Commission (CNPF), the Law on cash settlements, which is to enter into force on January 1, 2025, raises many questions regarding its application in practice and an important aspect concerns its impact on individuals who are not engaged in entrepreneurial, professional or craft activities. CNPF Deputy Chairman Adrian Gheorghita, while presenting the agency's perspective during the online event, noted that although many provisions of the law are not formulated as rights and obligations of consumers, its impact on them may be significant, which in the long run will lead to behavioral changes regarding the way we store and manage money, while the state will ensure that anyone has access to payment accounts with basic services. For his part, President of the Moldovan Banks Association, Dorel Noroc, said that, during the discussions about the provisions of the Law on cash settlements, practical examples of purchasing goods and services, including real estate and vehicles, as well as ways of making non-cash settlements, were touched upon. The event also included a question and answer session, during which experts from the tax, banking and money laundering prevention sectors provided clarifications and practical solutions. According to the Law on cash settlements, enterprises may make cash payments not exceeding 100 thousand lei per month to other legal entities or natural persons who are engaged in entrepreneurial and/or professional activity in the justice or health sector. The limitation of the respective amount does not apply to cash deposits to accounts opened with payment service providers. Also, they have the right to make cash payments in favor of a natural person who is not engaged in entrepreneurial activity, in the amount of up to 100 thousand lei per month, with some exceptions. Thus, they can make cash payments in favor of an individual who is not engaged in entrepreneurial activity, in the amount of up to 100 thousand lei per year, related to the transfer of waste and residues of ferrous and non-ferrous metals, industrial residues containing metals or their alloys. They also have the right to make cash payments in favor of an individual who does not engage in entrepreneurial activity, in the amount of up to 200 thousand lei per year, related to the sale of crop and horticultural products in kind and livestock products in kind, live and slaughter weight. They also have the right to make cash payments in favor of an individual who performs activities in the field of purchasing crop production, and/or horticulture, and/or objects of flora, in the amount of up to 600 thousand lei per year. It is also allowed to make cash payments in the form of dividends in accordance with the provisions of the tax legislation in the amount of up to 100 thousand lei per year per 1 participant/shareholder; to make cash payments on the basis of loan agreements in the amount of up to 100 thousand lei per year; to receive cash payments from an individual who is not engaged in entrepreneurial activity in the amount of up to 100 thousand lei per payment. At the same time, citizens have the right to pay in cash for the acquired real estate, unless its value, specified in the purchase and sale agreement, exceeds the equivalent of 100 projected average monthly salaries in the economy (1 million 540 thousand lei), including in cases where payment is made in installments; the acquired vehicle, unless its value, specified in the purchase and sale agreement, exceeds the equivalent of 50 projected average monthly salaries in the economy (770 thousand lei), including in cases where payment is made in installments. Depositing money into a bank for the purchase of real estate or a car of the appropriate size can be done on the basis of a Declaration of Personal Responsibility, in compliance with the current legislation. If the price specified in the contract of sale and purchase of real estate/vehicle exceeds the equivalent of 100 projected average monthly salaries in the economy in case of real estate and, respectively, the equivalent of 50 projected average monthly salaries in the economy in case of a vehicle, payment shall be made by bank transfer, except for the amount of up to 200 thousand lei, which may be paid in cash. Before the entry into force of the Law on Cash Settlements, the Service for the Prevention and Fight against Money Laundering was instructed, jointly with the National Bank of Moldova, to develop and approve the documents necessary for the application of this law. At the same time, the following change in the value limits for payment by individuals in cash for real estate and vehicles was agreed upon: from January 1, 2026 - 75 projected average monthly salaries in the economy in case of real estate being acquired and 25 projected average monthly salaries in the economy in case of vehicles being acquired; from January 1, 2027 – 50 projected average monthly salaries in the economy in the case of acquired real estate. // 17.10.2024 - InfoMarket.
