Tuesday, January 27, 2015

Maternity capital maximum protection against fraudulent schemes – Russian newspaper

Maternity capital maximum protection against fraudulent schemes – Russian newspaper

The government has submitted to the State Duma a bill which proposed to reduce the possibility of using the maternity capital. They will not be able to pay off the debts to microfinance institutions, if the money were taken for the purchase or construction of housing. This mechanism is often used by fraudsters.

Now the parent capital can be used, including, for the calculation of credit institutions on loans taken for the construction or repair. However, this scheme is often used by fraudsters, say in the government.

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According to the Pension Fund, as on November 1, 2014 more than 1.8 million Russian women used maternity capital to improve their living conditions. Of these, one in three (607,000 people) pay received from state funds on loans obtained for the corresponding purposes. Of these, 135,000 used the services of microfinance institutions and nearly 187,000 – the services of consumer cooperatives.

At the same time, often used fraudulent schemes to illegally cashing matkapitala. According to the chief of information-analytical center of the Russian Interior Ministry, for the period from 2010 to 2013 were identified more than 4 thousand cases of illegal cashing the money. In particular, in the case of 951 were violated when using the maternity capital to repay the principal and interest payments on the loan agreements concluded with microfinance institutions, say in the government.

The scheme was as follows. Recipients of the parent capital, who wanted to withdraw it illegally concluded with microfinance institutions target loan agreements. There prescribes that issued the money to buy housing.

In fact, recipients of public money property did not receive. Fraudsters gained decrepit or dilapidated houses, or the same house “sold” to multiple clients at the maternity capital certificates. These contracts were sent to the Pension Fund, which compensated for the costs of the microfinance organization. Part of this money surrendered mothers. Balance – from 30 to 80 percent – remained in scams.

This situation was due to a lack of control over a young sector microfinance institutions. The government bill aims to stop the use of such schemes.

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