Sanctions, answer questions. PROZAKAZ.COM

More and more banks in the European Union, England, and the United States are no longer crediting funds from payers in the Russian Federation and the Republic of Belarus to beneficiaries (recipients) accounts.

We recommend making cash payments at our company's office in Vilnius (up to 5000 Euros). Amounts exceeding 5000 euros can still be paid locally in Lithuania through a post office branch or bank cashier. For such payments, you will need documents confirming the legal transport of funds across the border (declaration) and a document confirming the origin of the funds, as well as a proforma invoice from our company in the name of the payer with details and the cost of the car or other goods.

What to do? Is it possible to buy a car or other equipment, goods in Europe or the USA? How can the payment be technically processed? Such questions have become commonplace, and our answers are provided below.

For example, if you have won a car at our auction auction.prozakaz.com or found a car/goods from another source, having a Schengen visa, you can legally cross the EU border and declare the import of funds, if necessary, by presenting an invoice from our company for the purchase of the car/goods. You can also make payment through proxies (arbitrary form) via acquaintances or relatives who permanently reside or visit Lithuania.

Additionally, as of 18/08/2023, we accept SWIFT transfers from Belarusian citizens to our bank account at the Polish PKO Bank (our company's commission for such transfers is 2%). Alfabank from Belarus sends transfers (estimated cost of such transfer is around 600 BYB).

Sanctions affecting car sales for Belarus:

Currently, cars are not considered sanctioned goods, unless the car/goods are considered luxury items. As of 05-05-2022 (relevant today), the exported car's cost should not exceed 50,000.00 (fifty thousand) euros, preferably less. Non-standard cars that may be considered dual-use items are under sanctions. Road motor vehicles above 5000 euros are under sanctions. Light snowmobiles are still exported, but you need to obtain customs permission and guarantee delivery and release into circulation in Belarus. Our commission remains 1% of the car or other equipment purchase cost, but no less than 250 euros.

Sanctions affecting car sales for the Russian Federation:

Under sanctions, all dual-use items, electric cars, cars with engines above 1900 cc, snowmobiles, and other non-standard cars that may be considered dual-use items are affected. Cars over 50,000 euros or those that can be considered luxury items. Road motor vehicles above 5000 euros are under sanctions.

For more information about sanctions and the issue related to bank transfers: According to cumulative data collected from the websites of the European Council, the European Commission, as well as sanction card websites, SWIFT system, and the Lithuanian FNTT (Financial Crime Investigation Service) website, it can be observed how sanctions targeting certain legal and physical entities of the Russian Federation and the Republic of Belarus are rigorously enforced.

Entities like FNTT (for example, in the case of the Republic of Lithuania) monitor compliance with sanction norms. According to some data, the security financial operations departments of banks manually or semi-automatically control all transactions through SEPA or SWIFT channels to determine whether they belong to direct or indirect subjects falling under sanctions. In the document "FREQUENTLY ASKED QUESTIONS" (as of April 19, 2022) on the European Commission's website, it is stated: "2. The SWIFT channel covers Russian Banks that potentially also have branches and subsidiaries around Europe. Will the SEPA channel for these subsidiaries also be blocked? Article 5h of Council Regulation 833/2014 prohibits the provision of specialised financial messaging services, which are used to exchange financial data, to the legal persons, entities or bodies listed in Annex XIV or to any legal person, entity or body established in Russia whose proprietary rights are directly or indirectly owned for more than 50 % by an entity listed in Annex XIV. Therefore, subsidiaries of the credit institutions listed in Annex XIV which are established in Russia are also covered by this prohibition".

As a confirmation of the seriousness of control and responsibility, an example of the investigation and bankruptcy of Amsterdam Trade Bank is provided. Link to the article: "Amsterdam Trade Bank under new money laundering investigation".

A well-known fact about the functioning of the SWIFT channel is the exchange of financial messages with agents and correspondent banks up to 4 entities. Therefore, tracing all forms of ownership between the sender and the correspondent for bank employees is difficult and, to avoid risks for the entire bank's operation, messages about crediting funds to the beneficiary's account are often rejected in accordance with the internal security policy of the beneficiary bank.

Do you have further questions? Viber, WhatsApp, Telegram +37060780220.