How do financial checks for money transfers work? What rules and what rules do credit institutions and the tax authorities follow for investigations? According to the provisions of the UIF provision of 25 August 2020, from this year some verification procedures involving Aggregate Anti-Money Laundering Reports (SARA) are strengthened. Therefore, even the transfer of funds by bank transfer follows a specific verification process and safety standards. Below we illustrate the details of the legislation and the methods of data transmission that credit institutions are obliged to comply with.
What are the disclosure obligations that banks and other credit institutions have
What amount of the transfer triggers reports on the transfer of money and tax checks? The UIF provision of 25 August 2020 set a tightening on the investigations concerning financial transactions of an amount exceeding 5,000 euros. Basically, the new rule establishes that from this year: banks, post offices and intermediaries periodically communicate to the UIF the financial transactions carried out by customers whose amount is equal to or greater than 5,000 euros.
This measure therefore reduces to one third the threshold which according to the previous provision of 23 December 2013 stood at a value of 15,000 euros. The obligation to notify does not mean that each transfer with a value exceeding the established ceiling triggers checks by the Taxpayer on the taxpayer. A set of factors must be present in order for a more in-depth verification to be considered necessary. However, it is good to know that credit institutions must comply with specific rules that provide for the obligation to report to the Financial Information Unit (UIF).
What amount of the transfer triggers reports on the transfer of money and tax checks?
The most recent UIF provision abrogates the previous one dated 23 December 2013. For citizens and for all those who use bank transfers to complete payments of various kinds, absolutely nothing changes regarding operations. In fact, the rule affects credit institutions such as banks, financial and postal services.
According to the dictates, these institutions must report financial transactions exceeding € 5,000 on a monthly basis through the SARA system, Aggregate Anti-Money Laundering Reports. If they fail to fulfill this obligation, the institutions themselves risk administrative sanctions pursuant to art. 60 of Legislative Decree no. 231/2007. This strengthened squeeze on checks charged to credit transfers is part of a broader initiative to combat evasion and money laundering. However, we reiterate that any verification actions by the Taxpayer on the taxpayer are triggered where specific parameters are present. Furthermore, this does not mean that movements of lower amounts cannot shift the lens of the Revenue Agency to suspicious transactions by savers. In these cases, it is always useful to complete the money transfer operations in full compliance with current tax legislation.
When completing a bank transfer, many taxpayers often have doubts about the correct compilation of the reason for example. In the article “The right reason for a bank transfer to avoid the tax authorities’ checks” you can find a guide to how to fill it in. So here is what amount of the transfer triggers reports on the transfer of money and tax checks.