Ukrainian banks have the right to suspend their clients' transactions if large amounts are deposited into their accounts, which raise suspicions about the legality of the funds' origin. This was announced by Kateryna Rozhkova, First Deputy Governor of the National Bank of Ukraine, in an interview with "We are Ukraine".
When can banks block transactions?
As Rozhkova noted, financial institutions require explanations and supporting documents in cases where:
- Significant funds are received into an individual's account, and the bank has no information about their origin.
- The account holder does not work officially anywhere or receives a minimum wage.
- Individuals use their accounts instead of individual entrepreneur (IEP) accounts to avoid additional taxes.
“Entrepreneurs often try to save money by using personal accounts for business transactions. This creates a situation where the bank does not understand where the money is coming from. In such cases, transactions may be stopped until supporting documents are provided,” Rozhkova noted.
Kateryna Rozhkova emphasized that such situations arise due to the desire of businessmen to minimize costs and maximize profits. At the same time, the state seeks to ensure the payment of taxes.
“This is a constant life story that looks like a search for justice. But, in my opinion, the current conditions are not the best for such a search,” she emphasized.
Do cards get blocked for frequent cash withdrawals?
There have been rumors recently that banks may block Ukrainians' cards for frequent cash withdrawals, especially if they occur more than three times a month or for large amounts. However, the National Bank of Ukraine has officially denied this information.
“The NBU has not introduced and does not plan to introduce restrictions on frequent cash withdrawals from bank cards,” the regulator said in a statement.
What should you pay attention to?
Ukrainians are recommended to:
- Use separate accounts for business transactions.
- Maintain transparency in your financial transactions.
- Keep documents that confirm the legality of receipts.
In the event of a stoppage of operations or account blocking, it is important to promptly provide the bank with the necessary confirmations. This will avoid further problems and quickly restore access to finances.
