In Ukraine, banks are obliged to regularly check their customers to ensure the relevance of data, as well as to prevent financial crimes. In particular, it concerns the identification and verification of a person, which are important elements in banking processes.
Lawyer Andriy Shabelnikov told Channel 24 that clients are often faced with the requirement to undergo identification or verification when a message is received from the bank. Identification is providing the bank with the customer's identification data, while verification is confirming that these data are correct at the time of the transaction.
According to the law, banks have the right to request re-identification in several cases:
- Expiration of documents : If the client's passport or other identification document has expired, the bank has the right to request data updates to ensure the information is up-to-date.
- Periodic checks to prevent financial crimes : As part of the fight against money laundering and terrorist financing, banks are required to periodically check their customers. This may include updating data or providing additional documents.
- Suspicion of falsification of documents or data : If the bank receives information about a possible falsification of documents or inaccuracies in the data provided, it may temporarily suspend access to the account until the situation is clarified.
Attorney Hanna Daniel adds that identification and verification must be done before a business relationship is established, transactions are conducted or an account is opened. She noted that the bank can carry out a check on the basis of the client's documents or at the same time using the information received by the bank.
Updating data in banks
According to representatives of the National Bank of Ukraine, as part of due diligence, banks must regularly update information about their customers. Data update terms depend on the level of risk associated with the client:
- High-risk clients should be screened at least once a year.
- Medium-risk clients must be inspected at least once every three years.
- For low-risk customers, the inspection should be carried out at least once every five years, provided there are no suspicions.
Thus, banks not only ensure that customer data is up-to-date, but also play an important role in preventing financial crimes, including money laundering and terrorist financing.
