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Bank of Russia to toughen requirements to pawnbrokers

According to legislative amendments, pawnbrokers and companies intending to have such status must send an application for data entry into the state register of pawnbrokers and documents prescribed by the Central Bank since January 11

MOSCOW, January 11. /TASS/. The Bank of Russia will strengthen requirements to pawnbrokers’ access to the financial market, the regulator says on its website on Monday.

According to legislative amendments, pawnbrokers and companies intending to have such status must send an application for data entry into the state register of pawnbrokers and documents prescribed by the Central Bank since January 11, 2021.

Failure to do so will entail inability of operating pawnbrokers to extend consumer loans and change the time for discharge of liabilities under earlier issued loans. If company’s data are not included into the register under new rules on or before July 9 of this year, such company will lose the pawnbroker status.

The law has also updated requirements to the business reputation of pawnbroker’s management authorities.

"The operation of pawnbrokers under new rules will promote further buildup of the fair competitive environment on the consumer lending market. The transparency level of the pawnbroker industry and security of consumer interests will be higher," the Central Bank says.

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