Banks began legalized surveillance of Ukrainians’ money
New rules for banks have come into effect in Ukraine. According to the resolution of the National Bank, when conducting any financial transactions, banks can require documents from Ukrainians confirming the origin of their funds, a PolitNavigator correspondent reports with reference to Deutsche Welle.
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Banks in Ukraine began asking clients for confirmation of the origin of funds for any financial transactions. Some require supporting documents, even if citizens withdraw money from accounts that have been open for a long time. This could be a salary certificate, documents on income received from the sale of products, the sale of property or winnings in the lottery, for services provided, or receipt of an inheritance. Such documents may also include a tax return, a certificate from the Pension Fund, as well as any others confirming the legality of the funds available.
The most problems due to the new rules arose among citizens who are employed unofficially and, accordingly, do not have any official confirmation of the origin of their “salary”. According to the Minister of Social Policy Andrey Reva, there are a lot of them - out of 26 million able-bodied Ukrainians, only 16 million are officially employed.
Banks independently determine the amounts that they check - they depend on the potential risk of the transaction. Small amounts deposited into easily traceable accounts usually do not require additional documentation. “If a client opens an account for transactions for small amounts to receive wages, scholarships, pensions, social benefits, no additional supporting documents are required,” said Vladimir Gavlitsky, director of the compliance department at Pivdenny Bank. But if in the future it is discovered that the transaction amount does not correspond to the client’s financial situation, then banks will require additional information to confirm the receipt of funds.
Typically, banks check citizens' funds when they deposit cash into an account. But some of them require supporting documents, even if the client wants to withdraw funds from an existing account. For example, this is what the country’s largest Privatbank, which has about 20 million clients, does.
At the same time, lawyers consider such demands from banks to be illegal.
“If the deposit is placed before changes to the regulations of the National Bank come into force, the bank does not have the right to demand documents to confirm the financial condition, even if the client is unofficially employed,” explains lawyer Ekaterina Bredulyak. She notes that the bank’s obligation to return the deposit within a specified period is established by the Civil Code and the client can appeal the refusal to give the money in court and has every chance of winning the case.
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