Starting September 10, the National Bank of Ukraine is introducing a number of new restrictions for payments by individuals using currency cards of Ukrainian banks, which may significantly affect citizens' financial transactions. The new rules, set out in NBU Resolution No. 108, are aimed at restricting certain financial transaction schemes and increasing control over spending abroad.
This document establishes two new limits for card payments in dollars/euro (and other foreign currencies) at the equivalent of 100 thousand hryvnias and 500 thousand hryvnias.
This surprised many, because there were previously restrictions on purchases abroad - no more than 100 thousand hryvnias per month.
However, there is an important nuance - the 100,000 limit applied only to hryvnia cards of Ukrainian banks. It did not apply to foreign currency cards.
Now the NBU has extended the restrictions to foreign currency cards.
So, starting tomorrow, it is allowed to pay no more than the equivalent of 100 thousand hryvnias per month for three categories of goods using currency cards of Ukrainian banks:
- Precious stones, metals and jewelry - code 5094;
- Watches, jewelry and silverware — code 5944;
- Coin and stamp stores - code 5972.
We are talking about the merchant MCC code (Merchant Category Code) - a code that is assigned to merchants by international payment systems (VISA, MasterCard) and is the same all over the world.
The second limit on currency card transactions — 500 thousand hryvnias/month — is introduced for payment abroad for the services of real estate agents and managers.
The restrictions will apply only to four areas, and we emphasize once again that the restrictions apply only to payments and only to currency cards. It is important to understand that banks distinguish between two concepts of “payments” for goods and services, as well as p2p transfers.
Payments abroad with foreign currency cards from Ukrainian banks have not been restricted since the beginning of the war. The new bans now apply only to the 4 types of payments listed above. Non-cash foreign currency payments for all other goods and services by our citizens can continue to take place without restrictions.
Which has been limited for several months:
- p2p transfers (from individual to individual) from cards in foreign currency - no more than 100 thousand hryvnias per month;
- Foreign payments for goods and services from hryvnia cards - no more than 100 thousand hryvnias per month;
- Cash withdrawals abroad from hryvnia cards - no more than 12.5 thousand hryvnias per week and 50 thousand hryvnias per month.
P2P transfers from hryvnia cards to cards in foreign banks were also completely banned. If you want to transfer something to an account in a foreign bank, open a foreign currency account in Ukraine, add dollars/euro to it, and send.
The NBU explained the new restrictions for currency cards (for 100/500 thousand hryvnias) by the fact that Ukrainians have mastered schemes for legalizing funds abroad. Most often, this concerns the return of previously purchased expensive goods. Foreign currency purchases of goods by Ukrainians abroad were not limited by our banks, so they could buy, for example, expensive watches, and then return them to the store or resell them to someone else. Then ask to transfer the funds not to the card of a Ukrainian bank, but to the account of a foreign financial institution. Many of our migrants opened such accounts for themselves abroad. Foreign banks have strict financial monitoring and it is necessary to explain the nature of the funds when a person replenishes their personal account with cash. When money is returned from an official European store, banks do not ask questions and there are no problems. The funds are legalized.
Banks were surprised that the NBU did not limit 100-500 thousand hryvnias per month for other expensive purchases, such as cars. However, they do not rule out that new restrictions may appear in the future.
Tightening the rules for payments with currency cards, the NBU, by Resolution No. 108, relaxed the rules for a number of currency purchases/transfers for businesses. In particular, for reinsurance contracts for our insurance companies, for e-commerce market entities, for recipients of interest on Eurobonds, and for air carriers.
