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On 10 December 2024, an important memorandum was signed in Kyiv that will change the rules for card transfers in Ukraine. It was signed between the National Bank of Ukraine and the country’s four largest banks: Oschadbank, Raiffeisen Bank, PrivatBank and Universal Bank (monobank). This document, which aims to increase the transparency of bank payment services, will be an important step in the fight against financial crimes and money laundering. This is reported by Time Ukraine Israel portal, citing Liga.
Changes to the customer verification process
The Memorandum provides for significant changes to the customer due diligence procedure, in particular when opening accounts. An important aspect is the division of clients into low and high risk categories. For those classified as high-risk, the requirements for the origin of funds and income level will be tightened. This will allow banks to control financial flows more effectively and avoid transactions with illegal funds.
Card transfer limits
From 1 February 2025, high-risk customers will be subject to restrictions on the amount of card transfers. Thus, the maximum limit per month for such customers will be UAH 150,000, and from 1 June 2025, this amount will be reduced to UAH 100,000. Low- and medium-risk customers will also be subject to restrictions, but the limits will be UAH 150,000 until February 2025 and UAH 100,000 after June of the same year.
In addition, the amount of transfers will be limited for individuals with unconfirmed income. For those with a high risk level, this amount will be UAH 50,000 per month, and for the rest of the clients – UAH 150,000, with a further reduction to UAH 100,000 in six months.
Why is this important for the market?
According to the National Bank of Ukraine, over 6.39 billion transactions totalling UAH 4.79 trillion were conducted in Ukraine in the first nine months of 2024. This demonstrates the significant role of card transactions in the country’s financial system, and the introduction of restrictions on transfers will be an important step towards improving the security of financial transactions.
This step is also aimed at reducing the risks associated with illegal transactions and strengthening confidence in the Ukrainian banking system. In addition, in case of proof of high income, the client will be able to make transfers at the level of his or her income, which is an additional mechanism to maintain transparency of transactions.
Impact on customers
For most Ukrainian citizens, these changes may not be noticeable, but for those who carry out significant financial transactions, the limits will be an important factor to consider when planning large transfers. These changes will help to reduce the likelihood of financial crime and increase the overall level of security in the banking market.
Overall, the signing of this memorandum is an important step towards reforming Ukraine’s banking system and ensuring its transparency in the face of current challenges.
