In the NBU want to close the banks’ ability to hide Ukrainians’ money from arrests

In the NBU want to close the banks’ ability to hide Ukrainians’ money from arrests

NBU aims to eliminate banks’ ability to hide Ukrainians’ money from arrests.

The National Bank intends to close the scheme that currently allows banks to withdraw their clients’ funds from under arrests.

The regulator has published a draft of changes to its Instruction on Cashless Payments, which may be adopted in October — proposals for the draft are accepted until October 4, 2024, after which it will be finalized and presented for approval by the NBU board. This document provides for a ban on the withdrawal of arrested funds when the account number is changed.

«The arrest imposed on the funds remains in effect in case of a change in the account number of the payer in accordance with the procedure for changing the account», the draft document of the NBU states.

Financial experts explained that at the moment, some banks help Ukrainians avoid arrest of funds on their accounts by court decisions. The NBU wants to stop this practice.

«When people lose court cases, and the bailiffs begin to enforce the collection of funds from their accounts, banks usually receive two letters. The first — the bailiffs find out from the bank if it holds accounts for a specific person (the one who lost the court case) and how much funds are there. The second letter contains instructions on the arrest of the accounts and their forced withdrawal. If the interaction with the bank occurs in an automated system (Automated System of Enforcement Proceedings, ASEP - Ed.), there are only a few hours between the two letters (data discovery/withdrawal of funds), and if in paper form by mail — a few days (up to a week). Therefore, the bank has time to quickly notify the client that their funds are being sought — between the first and second letter from the bailiff. The person can then either quickly withdraw the funds from an ATM (before they are blocked/withdrawn), or transfer them to another account. That is, one can open a new account in the same bank within 10-15 minutes (which the bailiff does not yet know about) and transfer the money there, avoiding arrest. Now NBU wants to close this loophole. Perhaps this is being done before the introduction of fines for violating the mobilization law and withdrawing funds in favor of the state budget, but the reasons remain unknown», the information was shared with «Krayina» in one of the banks.

In its draft resolution, NBU has detailed the list of requisites for the payment order for the forced withdrawal of funds after account arrest. It also required that bailiffs certify each payment order for such withdrawals not only with a signature, as is done now, but also with a seal. If all the requirements are not met, the bank has the right to refuse the bailiff in arresting the account and forcibly withdrawing funds.

In addition, the document specifies the requirement for banks (payment organizations) for full identification of the sender of funds. This is done to put an end to the practice of anonymous transfers when individuals receive funds in their accounts without specifying their sender. Under the new requirements (if approved), the bank will be obliged to indicate the sender’s full name for each credit.