Ukrainian banks may sign a joint memorandum as early as next week, which aims to introduce unified market practices and approaches for proper client verification and monitoring of financial transactions on customer accounts, several market participants informed the Interfax-Ukraine agency.
According to them, the memorandum is expected to provide for a phased reduction of the monthly transaction limit, after which intensified financial monitoring will be conducted in the absence of verified income.
One of the agency's sources indicated that an initial limit of 150,000 UAH per month might be introduced starting January 1, 2025, which will then be reduced to 100,000 UAH per month from July 1.
Another source added that the focus will not only be on card-to-card transfers – P2P transactions, which the National Bank of Ukraine has already limited to 150,000 UAH per month in one bank, but also on IBAN transfers. According to him, in the first month of the National Bank's restrictions, the volume of P2P transactions decreased by 5.2 billion UAH, while at the same time, IBAN transfers increased by 4 billion UAH.
The agency's sources noted that both banking associations – NABU and AUB – are involved in this initiative, and approximately half of the banks have already tentatively supported it. It is expected that the overwhelming majority of banks will join the memorandum, which could replace the corresponding regulation of the National Bank, currently set to expire on April 1 of next year.
As reported, starting October 1, 2024, the NBU established a six-month limit of 150,000 UAH per month for outgoing transfers of individuals from card to card (P2P, person-to-person), although it previously considered a stricter limit of 100,000 UAH. "The limit applies only to outgoing transfers from all accounts of the client opened in one bank to accounts of other individuals. The limit does not apply to accounts of volunteers that meet the criteria defined by the resolution, nor to individuals whose monthly income from verified sources exceeds the established limit amount," the regulator stated in its press release.
It is noted that the limit does not include transfers of funds between the client's own accounts in one bank, nor does it concern transfers by legal entities. Transactions with IBAN details are not restricted, as clarified by the National Bank.
The NBU indicated that 98% of banking clients make monthly transfers that do not exceed the specified amount.
In the central bank's view, the introduced limit will help minimize the use of payment infrastructure in illegal activities, particularly involving "drop" accounts, which are a common mechanism in the functioning of the shadow economy.