Innovations In The Law On Financial Monitoring Freezed The Real Estate Market In Ukraine

The amendments to the law came into force on April 28 and obliged bankers, notaries, realtors and other primary financial monitoring entities to tighten control over large purchases and expenses of Ukrainians, as well as to report them to the State Financial Monitoring Service. The innovation directly relates to transactions for the purchase and sale of apartments.

Developers and realtors believe that with many transactions for the sale of housing problems will arise. Mainly because in most cases, customers simply cannot explain where they got the money.

“By law, real estate brokers are now also the primary subjects of financial monitoring, and they are required to notify of suspicious transactions. And such formally can be considered more than 90% of the market. But even if an employee of the company turns a blind eye to the “suspicious” finances of the buyer, the notary may also report a “doubtful” transaction. Therefore, all developers puzzle over how to prevent a halt in home sales’ - said the head of one of the capital’s development companies.

The letter of explanation issued by the Notary Chamber of Ukraine clearly states that the notary is obliged to refuse to perform the operation if the client cannot provide documents confirming the origin of the funds.

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