Banks are blocking Ukrainians' accounts en masse

Ukrainians' accounts are being blocked en masse: banks are stepping up financial monitoring

Ukrainian banks have stepped up financial monitoring and are blocking customer accounts more frequently as part of financial security requirements. This was reported by Ukrmedia News.

First and foremost, we are talking about transactions that may look atypical or risky for banking systems.

When banks have questions

According to the publication, the increased attention may be caused by:

• atypical large enrolments;

• use of a personal card for business payments;

• transactions with crypto exchanges and offshore companies;

• «fragmentation» of individual entrepreneurs;

• inconsistency of operations with the declared KVED;

• Suspicious digital traces (VPNs, identical networks, Device IDs).

Risk thresholds

It is noted that monthly turnover of more than UAH 100-200 thousand is almost guaranteed to trigger a bank's request for confirmation of the sources of funds.

At the same time, the decision to block is made on an individual basis within the framework of financial monitoring legislation.

Context.

Banks in Ukraine are required to comply with financial monitoring requirements to combat money laundering and the financing of illegal activities.

Experts advise clients to prepare proof of origin of funds in advance and not to use personal accounts for business activities.