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29.04.2020

Law on financial monitoring of Ukraine dated 04/28/2020

The law on financial monitoring, which entered into force on April 28, caused a lot of questions and discussions. The greatest interest was aroused by the norm on mandatory identification of a bank client when transferring from UAH 5,000: many decided that now for the implementation of such operations banks will require documents confirming the origin of the funds.

That is, in order to transfer 6,000 UAH to grandmother before retirement or to pay off 8,000 UAH of debt for a loan, you will need to present a certificate to the bank stating that you honestly earned them and paid taxes.

This is not true.

Conclusions in UAH – without restrictions for our users

In fact, the law “On counteracting the legalization of proceeds from crime” does not create any restrictions on operations with bank cards – transfers can be made as before . Also, when conducting operations with bank cards, including the transfer of funds in an amount exceeding 5,000 UAH, cardholders do not need to go through any additional identification procedures.

Cashless transfers on WM.Money service do not have any restrictions , you do not need to split payments. Holders of the sending card and the receiving card are already identified by banks. Banks have information about cardholders; they know the volume of transactions inherent in you. Based on such operations, additional questions will not arise from banks

Law Restriction Details

The law does provide for mandatory customer identification for money transfers from 5000 UAH. However, we are not talking about transfers from card to card through banking or an application, or even online payment services. This rate applies only to cash payments .

If you want to transfer over 5000 UAH in cash through the bank’s cash desk , you just need to present a passport – but not a certificate proving the origin of the funds. Until the adoption of the law on financial monitoring, such a requirement also existed, however, the threshold sum was higher – from 15 000 UAH.

In this situation, there is no need for the bank to study the information on the origin of the funds; there will be enough passports for such an operation . This applies not only to the transfer of money, but also replenishment of your card, payment for goods and services.

As for cash transfers through self-service terminals (in which banknotes need to be invested), the NBU recommended that banks realize the possibility of a payer’s identity card programmatically.

If the terminal of a bank or non-banking financial company is equipped with a card reader or allows verification by entering a PIN code or a one-time SMS password, no additional steps are required. The law does not create any inconvenience for you in the performance of your usual operations

What has changed the law?

For ordinary users and an honest business – essentially nothing .

Of course, there are categories of customers that financial monitoring will affect . We are talking about those who carry out money transactions amounting to more than UAH 400,000 at a time: such transfers are subject to mandatory verification with all the consequences (providing documents and possible blockages if there are problems with the papers) .

By the way, before the adoption of the law, the threshold amount was lower – 150 000 UAH. So this is not a tightening, but rather a relaxation of the rules, even for those who often deal with large amounts.