Since April, important changes apply with financial inclusion

After having analyzed the subject on several occasions from the government, as of April, some payments can not be made in cash anymore. The law was enacted at the end of April 2014 and had several stages: on April 1, one of the last ones came into force. Below we detail some of the anticipated changes.

Real estate and cars.

From the date mentioned above, "operations relating to real estate and vehicles can not be paid in cash, when the price thereof exceeds the equivalent of 40,000 Indexed Units -UI- (US $ 5,428 to today)". If unsupported payment methods are used (such as cash itself) the user will be sanctioned "with a fine equivalent to 25% of the amount paid or received incorrectly, being jointly and severally liable both those who pay and those who receive such payments"

The means used then are: "bills of exchange crossed, which must be in the name of the acquirer of the legal business, checks common or deferred, crossed and with the clause 'no to order' (admitting the use of deferred checks without the clause of 'no to order' until December 31, 2018) and means of electronic payment (such as interbank transfer).

On the other hand, chained businesses will admit that the letter is in the name of the "purchaser of the legal business that gave rise to the series of chain-linked businesses".

In relation to the bank accounts of origin and destination of the funds, it is established that they may be located in local or foreign institutions. It is also expected that payments may be made through instruments whose holder or issuer is a subject other than the one that performs the transaction (for example, if a parent buys a vehicle for their child, it is valid that the funds leave the parent's account ). In the same line, the funds can be deposited in an account whose owner is not the business creditor (in the previous example, who sells the car does not require a bank account to make the sale).

It should be clarified that operations on real estate and vehicles do not affect those payments that were made prior to April 1, 2018, nor are those payments subsequent to April 1 related to preliminary or final businesses prior to that date.

That is to say, cash payments made before April 1 are valid for a sale of a real estate or a vehicle that takes place after that date. Similarly, if there is a business prior to April 1 of which a price balance arises, the payments of said balance may be made by any means, including cash.

This point in particular had generated doubts in the Association of Notaries who came to march to the Executive Tower to request the postponement of the entry into force, but after a meeting of the Ministry of Economy and Finance with the union it was clear that there are no businesses "in limbo".

The regulation exclusively regulates the way in which cash payments derived from this type of transaction should be made, so that payments in kind are not included, nor those operations in which there is no price to be paid. So there are no changes in operations such as swaps and donations of real estate or vehicles, nor in what refers to inheritance.

"The Ministry of Education and Finance is considering making some adjustment, as in the case of buying a vehicle, when the signal is of a low amount – a managed limit of US $ 500 – can be paid in cash".

Other purchases with the new regulation of financial inclusion

In turn, from today the use of cash for the payment of transactions of more than 40,000 IU ($ 153,920 or US $ 5,428 to today) is restricted and certain means of payment admitted in the operations of more than 160,000 IU ($ 615,680 or US $ 21,714).

This is for the payments made from April 1 corresponding to legal businesses celebrated with certain date from that day, regardless of the contracting parties.

"Exceptions are operations in which one of the parties is: a financial intermediation institution, an electronic money issuing institution, an entity that provides financial services for exchange, credit or domestic transfers and abroad regulated by the Central Bank or a The principal activity of which is to make loans in cash, provided that it is linked to any of the aforementioned entities, nor will these provisions be applicable to payments that have a specific regulation (such as the payment of remunerations, rents, sales of real estate and vehicles, among others) ".

The regulation exclusively regulates the way in which cash payments must be made, so that payments in kind are not included (for example, the exchange of merchandise between companies), nor any other operation therefore, payments in kind are not included, nor those operations in which there is no price to be paid. So there are no changes in operations such as swaps and donations of real estate or vehicles, nor in what refers to inheritance.

"The Ministry of Education and Finance is considering making some adjustment, as in the case of buying a vehicle, when the signal is of a low amount – a managed limit of US $ 500 – can be paid in cash".

Other purchases

In turn, from today the use of cash for the payment of transactions of more than 40,000 IU ($ 153,920 or US $ 5,428 to today) is restricted and certain means of payment admitted in the operations of more than 160,000 IU ($ 615,680 or US $ 21,714).

This is for the payments made from April 1 corresponding to legal businesses celebrated with certain date from that day, regardless of the contracting parties.

"Exceptions are operations in which one of the parties is: a financial intermediation institution, an electronic money issuing institution, an entity that provides financial services for exchange, credit or domestic transfers and abroad regulated by the Central Bank or a The principal activity of which is to make loans in cash, provided that it is linked to any of the aforementioned entities, nor will these provisions be applicable to payments that have a specific regulation (such as the payment of remunerations, rents, sales of real estate and vehicles, among others) ".

The regulation exclusively regulates the way in which payments in cash must be made, so that payments in kind (for example, the exchange of merchandise between companies) are not included, nor any other operation in which there is no price to be paid in money.

Thus, cash (bills and coins) can not be used for cash payments of those operations whose total amount exceeds 40,000 IU.

In addition, from April 1, domestic service workers registered with the Social Security Bank (BPS) as monthly must begin to collect their salary electronically, either by crediting a bank account or electronic money instrument in the institution chosen by the worker. In case the worker has not chosen the institution, the employer may do so.

"These provisions will not be applicable in the case of workers whose employer is receiving, as of December 31, 2017, a retirement, pension or retirement from any social security institute, in which case, the remuneration may continue to be paid in cash. "

Beyond the category to which the worker belongs, all without exception have the right to
to be able to choose, at any moment, to begin to collect their remunerations through free electronic means, using the basic services without cost that the Law of Financial Inclusion foresees (at least 5 withdrawals of money without cost and eight free electronic transfers per month).

Source consulted: www.elpais.com.uy

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