Banks will automatically seize debtors’ funds: Verkhovna Rada supports the bill
20 November 2024 21:54
Debtors in banks will have their funds automatically seized. This will be possible in the near future because on November 20, MPs adopted in the first reading the draft law “On Amendments to Certain Laws of Ukraine on Digitalization of Enforcement Proceedings,” "Komersant Ukrainian" reports, citing the Ministry of Justice.
Its authors claim that the document is aimed at modernizing and digitalizing some stages of enforcement proceedings, which will help optimize the stages of enforcement proceedings, the timing of enforcement actions, and increase the efficiency of enforcement proceedings.
The draft law provides for
- exclusion of a person from the Unified Register of Debtors in case of full payment of the debt;
- expanding the functionality of the automated enforcement system. In particular, regarding the interaction of bailiffs with government agencies, banks, other financial institutions, non-bank payment service providers, and issuers of electronic money;
- introduction of interaction between the Unified Register of Debtors and other registers in order to prevent alienation of property by the debtor;
- the possibility of generating a certificate on the presence/absence of information about a person in the Unified Register of Debtors;
- improvement of the procedure for foreclosure on debtors’ funds on accounts in banks and other financial institutions;
- automated seizure of citizens’ funds owed to banks or non-bank payment service providers authorized to open payment accounts;
- resumption of enforcement proceedings in case of re-submission of the enforcement document, rather than opening a new enforcement proceeding;
- determining the procedure for foreclosure on debtor’s funds held on deposit accounts;
- introducing automated interaction between the System and the securities depository system.
The parliament says that the speedy adoption of the draft law will help optimize the stages of enforcement proceedings, the timing of enforcement actions, and increase the efficiency of enforcement proceedings.
