Ukrainian banks may restrict transfers between individuals: how the limits work
In Ukraine, banks may set limits on transfers between individuals, regardless of whether the recipient is a relative, friend, or stranger. The size of the limit depends on the customer's risk profile and the availability of verified income; this is based on a memorandum signed in December 2024. Exceeding the limit does not automatically block the account, but the bank may not process the next payment.
In Ukraine, financial institutions may set limits on transfers made by one individual to another. The recipient's identity is irrelevant: it could be a stranger, a friend, or a family member. The amount of transactions allowed depends on the client's risk level and whether their income has been verified.
These restrictions are related to the Memorandum on ensuring transparency in the operation of the payment services market, which banks signed in December 2024 year. The document provides a risk-based approach to customer transactions. It is intended to help prevent the illegal use of payment infrastructure and "drop schemes," in which the accounts of individuals are used for questionable transactions.
Andriy Dubas, President of the Association of Ukrainian Banks, previously explained: the banking community aimed to establish a unified approach to identifying transactions that may indicate misuse of the payment infrastructure.
The limits may apply to both transfers between cards and transactions using IBAN details. However, if a customer transfers funds from their own account to another account belonging to them within the same institution, such transactions are not subject to the limits.
Reaching the limit does not automatically mean that the account will be blocked or that a fine will be imposed. However, the bank may not process the next payment if the amount exceeds the available limit.
For clients without documented income, there may be approximate monthly limits. If a person needs to regularly transfer large sums, the bank may request proof of the source of funds. This may require relevant documentation. After verification, the institution may review the limit and set an individual threshold based on verified income.
Monthly limits can vary for different customers. If the income is official and documented, a person can contact the bank and provide these documents. After reviewing the financial information, the amount of available transfers may increase. Therefore, the need to regularly transfer large sums of money to parents, children, or relatives does not necessarily mean that the customer will remain within the standard limit.
It is also important to be able to explain the source of the funds and the purpose of the transaction. The fact that the funds are being transferred to a close relative does not, in itself, eliminate the requirements for financial monitoring.