The National Bank of Ukraine has restricted p2p transfers for individuals. Find out when the restrictions will come into force, what consequences it will have and what to expect from the new rules

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The National Bank of Ukraine (NBU) is introducing restrictions on card-to-card (p2p) transfers for individuals starting from 1 October. This is stated in the NBU's announcement. According to the NBU, this decision is aimed at combating schemes related to ‘drops’ - illegal transactions when individuals provide their bank details for suspicious transactions. At the same time, Forbes states that the NBU plans not only to limit P2P transfers but also to introduce other changes.

To find out what the limits are for cash withdrawals from ATMs in Ukraine, please follow the link.

Why is the NBU introducing restrictions?

Andriy Pyshnyi noted that these measures are necessary to protect both the state budget and citizens. It is known that drop schemes threaten the financial security of individuals who, by giving their cards and data to unauthorised persons, are at risk of financial losses. In addition, the State Tax Service may impose additional taxes on transactions conducted through such accounts.

P2P transfers: What is the limit and how will it work?

It should be noted that the restrictions are introduced for 6 months. The limit is set at UAH 150 thousand. The limit applies only to outgoing transfers on all accounts of the client opened in the same bank to the accounts of other individuals.

At the same time, the limit does not apply to the accounts of volunteers who meet the criteria set out in the resolution and individuals whose monthly income from confirmed sources exceeds the amount of the limit.

Transfers are also not restricted when transferring funds between the client's own accounts opened with the same bank and to transfers of legal entities. Transactions using IBAN details are not restricted.

The NBU Resolution defines five criteria for volunteering. In order not to be subject to restrictions, a volunteer must meet at least two criteria

- the individual is officially registered as a volunteer;

- holding volunteer meetings is a typical activity on the individual's accounts with a payment service provider;

- the individual has submitted a letter from a government agency/military unit/charitable foundation on cooperation in organising the fundraiser;

- the individual has provided information on the planned amounts and terms of fundraising, indicating the purpose of such fundraising and the further use of the funds raised;

- information from open sources, social networks and the Internet confirms that the individual is engaged in volunteer activities and the purpose of the volunteer collection.

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Other legislative changes and draft law No. 11043 

In addition, the NBU Governor emphasized that in order to implement effective mechanisms to counteract "drops", amendments to the current legislation are also needed. The NBU plans to submit relevant proposals to the Parliament and is ready to discuss this issue with MPs.

Draft Law No. 11043 will be an additional tool for the NBU in the fight against drops. This document envisages the introduction of a number of changes designed to combat illegal financial transactions more effectively. The draft law was presented by the NBU during a meeting of the parliamentary provisional investigatory commission (PIC) on August 13.

Key changes in the Draft Law No. 11043

The draft law provides for the following important measures:

1. Fines for payment service providers: For violation of the law, payment service providers may be fined up to 5% of the amount of the violation.
2. Capital requirements: The NBU will be able to set capital requirements for financial service providers, which will increase market reliability.
3. Professional judgment of the NBU: The NBU will be able to apply professional judgment in supervising compliance with legal requirements in the payment services market.
4. Information exchange with the Cyber Police: The process of information exchange between payment service providers and the Cyberpolice will be accelerated, which will allow for a faster response to violations.

Draft law No. 11043 may be considered by the Verkhovna Rada as early as September this year during the parliamentary session. Danylo Hetmantsev, Chairman of the Verkhovna Rada's Finance Committee, confirmed this information in an interview with Forbes. The NBU representative, who wished to remain anonymous, also added that the law should regulate the creation of registers of drops and merchants involved in misdirection, expand the NBU's powers to restrict the activities of dishonest market players, and increase the responsibility of organizers of drop schemes.

In addition, broader changes are being discussed, including new approaches to financial monitoring and increased criminal liability for participation in drop shipping schemes. These measures are aimed at further strengthening the country's financial security and combating illegal schemes in the market.

We remind you! There are several ways to make payments in Ukraine - in cash, by card, using contactless payment systems, etc. Read how tourists, including foreigners, can make payments in Ukraine and whether there are any restrictions under martial law in our previous article.

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