NEWS

Card-to-Card Transfer Restrictions in Ukraine: NBU Resolution

As of October 1, 2024, temporary restrictions on card-to-card transfers come into effect, introduced by the National Bank of Ukraine (NBU) through Resolution No. 102 dated August 27, 2024. These measures will last for six months and aim to prevent the illegal use of payment infrastructure.

Key Points of the Card-to-Card Transfer Restrictions

The resolution imposes a monthly transfer limit of 150,000 UAH for transfers between individuals using electronic payment system details (P2P). This limit applies to all transfers from one or several accounts of an individual within one bank to the accounts of other individuals. However, the restrictions do not apply to:

  • Transfers between a customer’s own accounts within the same bank.
  • Transfers to accounts of volunteers meeting the established criteria.
  • Cases where an individual’s income exceeds the set limit, provided proof of income sources is provided.
  • Transfers made using IBAN details are also exempt from the restrictions.

Duration of the Restrictions

The restrictions will be in effect from October 1, 2024, to March 31, 2025. At the end of this period, the NBU will review the measures and decide whether to extend or cancel them, depending on the results achieved.

Purpose of the Restrictions on Card-to-Card Transfers

The main goal of these restrictions is to combat so-called “drops,” individuals who provide their bank details for use by third parties in illegal financial schemes. These measures will help reduce the use of “drops” in Ukraine’s shadow economy and decrease the volume of illegal operations, which, according to the NBU, may reach up to 200 billion UAH per year.

Exemptions for Volunteers

The NBU has considered the interests of volunteer organizations, and the card-to-card transfer limits will not apply to volunteers. To be exempt from these limits, volunteers must meet at least two of the five criteria, such as being registered as a volunteer, providing letters from government agencies or charitable organizations, and providing information about the purposes and timelines of fundraising.

Future Plans

To further enhance the fight against illegal use of payment systems, the NBU plans to:

  • Adopt Bill No. 11043, which will increase fines for violations of payment legislation and ensure prompt data exchange with Cyberpolice.
  • Introduce legal norms to hold organizers and participants of illegal schemes accountable.
  • Create a registry of clients whose cards were used in illegal schemes. This registry will be a source of information for banks when establishing business relationships and servicing clients, and it will be regularly updated.

The card-to-card transfer restrictions will help improve the control over compliance with the law and reduce the risks of using the payment system for illegal purposes.

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