The National Bank has restricted card-to-card transfers for Ukrainians: who is not affected and why
27 August 2024 18:24
Starting from 1 October, the National Bank will introduce a six-month limit on card-to-card transfers. This was reported by "Komersant Ukrainian" with reference to the the national regulator.
The limit will apply only to outgoing transfers from all accounts of the client in one bank to accounts of other individuals.
The limit does not apply to the accounts of volunteers who meet certain criteria and individuals whose monthly income from verified sources exceeds the established limit.
Also, the limit does not apply to transfers between the client’s own accounts in the same bank and to transfers of legal entities. Transactions using IBAN details are not restricted.
The NBU noted that the measure will be temporary – it will last only 6 months.
Why the NBU imposed the restrictions
According to the NBU, the temporary limit on the amount of card-to-card transfers will prevent the use of the payment infrastructure for illegal purposes and should solve the problem of so-called “drops”.
“Drops” are people who transfer their card account details and data to third parties for payment. These accounts are used as “transit” accounts for transferring and laundering illegal funds. It is difficult to estimate the scale of the problem of using drops because they mimic the usual behaviour of an individual, but in general, there are tens of thousands of dormant and active accounts in the system.
According to several major banks, in 2024, business relations with more than 80,000 customers have already been terminated due to participation in drop schemes. The amount and number of card-to-card transfers show a steady upward trend in all groups of banks, regardless of the volume of card business.
The NBU’s analysis shows that about UAH 200 billion a year can be transferred through drop cards.
