In Ukraine, realtors are required to inform the State Financial Monitoring Service only about suspicious financial transactions related to real estate or attempts to carry them out. These rules have been in place for several years and do not apply to all transactions over UAH 400,000, as some media outlets reported.
Source: OBOZREVATEL
The Ministry of Finance emphasized that financial monitoring is based on a risk-oriented approach. This means that realtors assess the nature of the transaction, business relations with the client, and sources of funds, rather than controlling all deals.
The key responsibility of realtors is to report to the State Financial Monitoring Service any suspicious actions by clients or attempts of such actions.
Previously, media reports claimed that realtors supposedly had to submit data on all transactions over UAH 400,000, which could have complicated the transaction process, including client identification, verification of fund sources, and storing documents for five years.
If these rules were applied without clarification, it could have led to delays in preparing transactions by 1–3 days and increased bureaucracy for clients, while violations could result in fines or loss of license for realtors.
Additionally, some intermediaries might have tried to bypass the financial monitoring system for a higher commission, which could have fostered the growth of a “gray” real estate market.
Discussion about this post