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How to Safely Transfer Money When Buying an Apartment in Bishkek: Letter of Credit, Cash and Bank Transfer

Most real estate transactions in Bishkek are conducted in cash — this is a local tradition. But transferring several million som is a moment of enormous risk for both parties. How can it be done safely?

Why Is Transferring Money a Risk?

For the buyer:

  • Handed over the money → the seller disappeared and the transfer of title was not completed
  • The seller received the money and then challenged the transaction

For the seller:

  • Received a bundle of banknotes → some turned out to be counterfeit
  • Signed the contract, money "coming soon", but the buyer vanished

Method 1: Cash in the Presence of a Notary (Most Common in Bishkek)

Scheme: the money is transferred in the notary's office after the contract is signed. The notary records the fact of transfer in the contract with the phrase "settlement made in full".

Pros:

  • Fast, familiar to the market
  • The notary is an official witness

Cons:

  • Title transfers after registration with the State Registry (7–10 days after the transaction)
  • During those 7–10 days the money is with the seller, but the apartment is not yet legally the buyer's
  • Risk of counterfeit banknotes

How to minimise risks:

  • Check banknotes with a detector (notaries often have one)
  • Add a condition to the contract: "if registration is impossible, the seller is obliged to return the sum within 3 days"
  • Work with a trustworthy notary

Method 2: Letter of Credit Through a Bank (Safest)

Scheme:

  1. The buyer deposits money at the bank in a special letter-of-credit account
  2. The bank "freezes" the money until the condition is met — registration of title
  3. After registration the seller presents a State Registry extract → the bank releases the money to them
  4. If registration does not take place — the money is returned to the buyer

Pros:

  • The seller is guaranteed to receive the money (the bank is the guarantor)
  • The buyer is guaranteed to receive the apartment (otherwise the money is returned)
  • Protection against counterfeit banknotes and fraud
  • Ideal for remote transactions

Cons:

  • Service cost: ~3,000–10,000 som (depending on the bank and the amount)
  • The bank must be chosen in advance
  • Minor bureaucracy (opening a letter of credit takes 1–2 days)

Banks in Bishkek providing letters of credit: UNIBANK, RSK Bank, Optima Bank, DOS-Credobank and others.

Method 3: Non-Cash Bank Transfer

Scheme: the buyer transfers money to the seller's account simultaneously with signing the contract or after registration.

Pros:

  • Full transparency and documentary confirmation
  • No risk of counterfeit banknotes
  • Convenient for large sums

Cons:

  • Not all sellers in Kyrgyzstan want a "white" transaction (tax considerations)
  • The amount in the contract must match the amount actually transferred
  • The tax authority may raise questions about the buyer's source of funds (for large amounts)

Method 4: Notarial Deposit

The notary accepts the money as a deposit and transfers it to the seller once the transaction conditions are met. The equivalent of a letter of credit, but through a notary.

Status in the KR: the service is available but rarely practised. Clarify with the notary in advance.

What to Do With a Large Cash Sum

If the transaction is still conducted in cash:

  1. Count the money in the notary's presence — do not hesitate to take 15 minutes
  2. Use a banknote detector — ask the notary or bring your own
  3. Obtain a receipt — in addition to the contract, a separate written receipt from the seller confirming the specific sum
  4. Do not transport the money alone — take a companion
  5. Do not publicise the date and amount — say nothing to unnecessary parties

Deposit: When and How to Transfer

A deposit is transferred before the main transaction — when reserving an apartment. This is a separate risk.

Rules for the safe transfer of a deposit:

  • Only through a notarially certified deposit agreement
  • Amount — no more than 5–10% of the value (a reasonable size)
  • The contract should state that the deposit is returned in double the amount if the seller withdraws from the deal

Recommendation

For transactions of 5,000,000 som or more, we strongly recommend a letter of credit — the cost of the service is negligible compared to the transaction amount, and security is maximised.

Consultation with Aziza Talantbekovna – realtor, 30 years experience, Bishkek. From 2,000 som. Tel: +996 702 584 477

PAID consultation. From 2,000 som. Even for a single question. Tel: +996 702 584 477