Banks will provide information on financial transactions at the request of the National Police: Zelensky signs law

6 November 2024 13:40

President Volodymyr Zelenskyy has signed Bill No. 11043 to improve the NBU’s functions of state regulation of financial services markets. This is stated in the card of the bill, informs "Komersant Ukrainian"

The law contains the following main provisions:

the obligation of banks and other financial institutions to provide information at the request of the National Police, including data on financial transactions and the directions where funds were transferred;
united credit unions will be able to attract loans from foreign donors in foreign currency;
the mechanism of credit union mergers has been finalized, which will allow many of the small credit unions operating today to continue their activities by joining more developed and organized credit unions and thus share administrative costs of doing business with more capable unions, etc.

From now on, in order to prevent or stop erroneous, improper payment transactions that have signs of a criminal offense, payment service providers are obliged to immediately provide information upon electronic requests from the National Police of Ukraine:

about such a payment transaction, in particular, the surname, name and patronymic (if any) (full name) of the recipient and the full name of the recipient’s payment service provider, the unique identifier of the recipient
payment device identifier,
code identifying the transaction in the payment system,
full number of the payment instrument issued,
recipient’s account number.

According to the law, banks, postal operators, and branches of foreign payment institutions have the right to combine financial payment services with ancillary payment services.

Among the main innovations of this law is the permission for financial companies, pawnshops, and credit unions to provide payment services on the basis of existing licenses without obtaining a separate license for the provision of financial payment services.

At the same time, the NBU was authorized to set requirements for the adequacy, components, and calculation of the regulatory capital of non-bank payment service providers.

Follow us on Telegram: the main news in brief

The law also provides for the introduction of remote inspections and an increase in the amount of fines imposed by the NBU for violations of the legislation regulating activities in the payment market.

This Law shall enter into force on the day following the day of its publication, except for subparagraph 15 of paragraph 6, which shall enter into force three months after the date of entry into force of this Law.

Previously [Kommersant] wrote earlier that Article 62 of the Law “On Banks and Banking Activities” regarding the procedure for disclosure of banking secrecyis going to establish a new ground for disclosure of banking secrecy. Namely, banks must disclose it to the National Police of Ukraine in cases and to the extent specified in Article 31 of the Law “On Payment Services”.

This article was supplemented with a new part 7, according to which, in case a payment service provider receives a written (electronic) request from the National Police body tasked with implementing the state policy in the field of combating cybercrime regarding a user’s payment transaction if such a transaction contains signs of a criminal offense under Articles 185, 190-192, 200, 361, 361-2, 362-363 of the Criminal Code of Ukraine, such a provider shall, within the shortest possible time (but not later than 24 hours after receiving the request), provide the following information

the amount and currency of the payment transaction;
date of the payment transaction;
type of payment transaction;
geospatial data, IP address, address of the means of remote communication (including the payment application) or payment device used to perform the payment transaction (if any), and in case of a payment transaction through a cash desk – the address of the cash desk (if any);
identification data of the recipient: for an individual – surname, name and patronymic (if any), registration number of the taxpayer’s account card; for a legal entity – full name, identification code according to the Unified State Register of Enterprises and Organizations of Ukraine;
full name of the recipient’s payment service provider;
unique identifier of the recipient and/or full number of the electronic payment instrument and/or account of the recipient;
name and code of the acquirer (if any);
identifier of the payment device (if any);
code identifying the transaction in the payment system (if any);
unique payer identifier and/or full number of the electronic payment instrument and/or payer’s account.