Ukraine is planning to harmonize its financial monitoring regulations with European standards as a prerequisite for joining the Single Euro Payments Area (SEPA). This was reported by Dengi.ua, referencing insights from Maryna Pavlenko, a financial monitoring expert at GLOBUS BANK, originally published by 24tv.ua.
Key Provisions of the New Draft Law
Financial control procedures are set to change with the potential adoption of Draft Law No. 14327-d, "On Amendments to Certain Legislative Acts of Ukraine." This document serves as a foundational step for integrating the Ukrainian financial system into the European SEPA space.
As Maryna Pavlenko explains, the primary objective is not to impose total control over citizens' finances, but to transition to a modern Risk-Based Approach (RBA).
"We are not talking about increasing pressure on all bank clients, but rather transitioning to a more modern and transparent model of financial monitoring. Its main goal is to identify suspicious schemes more rapidly and prevent money laundering, terrorist financing, and other financial abuses—without creating unnecessary barriers for law-abiding citizens," the expert stated.
Content of the Unified Register
Public concern has largely focused on the creation of a single state register of accounts and individual safe deposit boxes for natural persons. However, experts reassure that this register is not a tool for real-time tracking of personal wealth.
The database will only contain fundamental information:
- Account number in the international IBAN format;
- The name of the banking institution;
- Identification data of the account holder;
- Records confirming the rental of a bank safe deposit box.
Critically, the law strictly prohibits the entry of the following information into the register:
- Account balances;
- Transaction history (transfers, deposits, payments);
- The contents of safe deposit boxes.
"It is fundamentally important to understand that the new law is not about breaking bank secrecy in its classical sense, but about systematizing basic data regarding the existence of accounts. Similar mechanisms have been operating successfully in European countries for years," Pavlenko emphasized.
Law Enforcement Access
According to the bill, law enforcement agencies will not have immediate access to the register. Direct access will only be granted at the final stage of European integration - no earlier than six months before Ukraine's official accession to EU membership.
Until then, the function of financial monitoring remains specialized: identifying and analyzing suspicious transactions, and only transferring materials to authorized bodies when there are robust legal grounds for investigation.
How to Avoid Account Freezes: Expert Advice
To avoid triggering automated financial monitoring flags and subsequent card blocking, Ukrainians are advised to follow three core rules:
- Use accounts for their intended purpose: Personal cards are for personal expenses. Accepting regular payments for commercial or entrepreneurial activities on a personal card is a major red flag.
- Clarify large transfers: For non-standard or high-value transactions, always ensure the "Purpose of Payment" field is filled out clearly and accurately.
- Avoid "Transit" or "Smurfing" schemes: Banking algorithms react aggressively to "splitting" - when an account receives numerous small deposits from various sources that are then quickly transferred elsewhere or withdrawn in cash.
