On 10 November, the Verkhovna Rada approved, at first reading, Bill No. 14327-d, which is necessary for Ukraine’s accession to the Single Euro Payments Area (SEPA). Once integration is complete, Ukrainians and businesses will be able to make transfers between banks in Ukraine and European countries in accordance with common standards, which should reduce costs and simplify international payments. However, the adoption of the bill in its first reading does not yet mean that Ukrainian banks will actually be connected to SEPA — for this to happen, legislative amendments must be finalised and a separate accession procedure must be completed.
- The Verkhovna Rada has approved, at first reading, Bill No. 14327-d on accession to SEPA.
- Once integration is complete, international transfers in euros could become cheaper and simpler.
- The new rules will make it easier for Ukrainian businesses to settle payments with their European partners.
- The draft bill provides for tighter financial monitoring and record-keeping of bank accounts.
What will change for Ukrainians following accession to SEPA
SEPA (Single Euro Payments Area) — a single euro payments area that brings together banks in European countries under common rules for making cashless payments. Its main advantage is that international transfers in euros can be carried out using a procedure similar to that for domestic bank payments.
For Ukrainians, this will mean an easier way to send money to relatives abroad, receive payments from European countries and pay for goods and services. Businesses will be able to settle accounts with foreign partners more conveniently, receive payments from customers and make cross-border payments.
It is expected that, thanks to common payment standards, fees for such transactions may fall. However, the final cost and speed of transfers will depend on the bank, the type of payment and the payment services available.
What changes does Bill No. 14327-d propose?
The document aims to bring Ukrainian legislation into line with European rules on combating money laundering and the financing of terrorism. Compliance with these requirements is one of the prerequisites for joining SEPA.
Key provisions include the establishment of mechanisms for the registration of bank accounts and individual bank safe-deposit boxes, the improvement of financial monitoring, and access by authorised bodies to information specified by law.
It was precisely the procedure for accessing account information that had previously sparked debate during the drafting of the document. Lawmakers must reconcile financial transparency requirements with the protection of personal data and banking secrecy.
When will Ukraine join SEPA?
Following its approval at first reading, Bill No. 14327-d is due to undergo further amendments and a final vote in the Verkhovna Rada. In addition, other regulatory and technical requirements of the European Payments Council must be met.
Only once the accession process has been completed will Ukrainian financial institutions be able to gradually connect to the relevant payment schemes.
No specific date has yet been announced for the launch of SEPA for Ukrainian customers. Until the new mechanisms are actually launched, international transfers will continue to be processed in accordance with current banking regulations.
