Payments for transactions worth over AMD 300 000 must be made in a non-cash manner; in case of failure to comply with the law, the transaction will be considered as null and void

The Law “On non-cash transactions” adopted on 18 January 2022 will enter into force on 1 July of this year, pursuant to which payments for transactions worth over AMD 300 000 must be made in a non-cash manner. This particularly refers to the transactions of alienation, use of property, performance of works and provision of services, the price of which exceeds AMD 300 000 or, for example, AMD 500 000, if they are such transactions which result in registration of rights over property. These are, for example, the purchase and sale of real estate, or loans between natural persons in case of exceeding AMD 300 000, etc. This was announced by Deputy Minister of Justice Yeranuhi Tumanyants during the discussion — in the first reading — of the draft Law "On making a supplement and amendments to the Law ’On non-cash transactions’".

"In order to implement these arrangements, it is necessary to ensure that such transactions are actually made in a non-cash manner," said the Deputy Minister, clarifying that the draft under consideration proposes to define that in case the requirements of the said Law have not been observed, the given transaction will be considered as null and void. In this case, any interested person may apply to court within ten years and require application of the consequences of the null and void transaction. Where the court decides that the transaction is null and void, each of the parties to the transaction will be obliged to return to the other party all the proceeds of the transaction, and if it is impossible, to compensate the received value in money. This arrangement will also apply in cases where the transaction is splitted and the payment is made in instalments in order to avoid the requirements of the law. In this case, the transaction will also be considered as null and void.

Economic entities must mandatorily ensure the acceptance of non-cash payments via payment cards, except for kiosks. Acceptance of non-cash payment via other payment instruments based on payment technologies (for example, e-wallets) will be made at the request of economic entities.

The Standing Committee on Financial-Credit and Budgetary Affairs of the National Assembly gave a positive conclusion to the draft. According to co-speaker Narek Grigoryan, the adoption of the draft will increase state budget revenues, as the shadow turnover will be reduced.