Peculiarities of financial operations under the law on financial monitoring are detailed by the National Bank - Vitalii Vlasiuk

Legislation
16:00 Tue 28.04.20 1317 Reviews
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On April 28, the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction” No. 361-IX (except for the third paragraph of sub-item 9 of item 6 of Section X) enters into force.

Law firms, bar associations and lawyers who practice law individually are specially designated subjects of primary financial monitoring. The persons who provide the services in the framework of employment shall however constitute an exception.

The Head of the UNBA Committee on International Law Vitalii Vlasiuk and lawyer Vladyslav Vlasiuk point out the main features of financial transactions under the new conditions.

• "anonymous" operations such as account replenishment through the terminal are limited (from now on the sum exceeding 5K requires a client’s identification);

• there are new subjects of financial monitoring - postal operators, lawyers, realtors, accountants, issuers of electronic money (to check and to some extent be responsible for the legal origin of funds such as the parties to the agreement);

• end of anonymity for e-wallets (owners must be identified by the end of the year, the position on the crypt is however not specified yet);

• financial monitoring is, first of all, about large transactions (the threshold was raised from 150K to 400K).

Following the public explanations provided by the National Bank, Vladislav Vlasyuk notes, the financial monitoring will look like this:

1. Transfers from your own account do not require additional identifications (your bank already knows everything about you).

2. Cash transfer through the terminal is possible without restrictions, if you are identified; if anonymous - up to 5K.

3. Crediting small amounts to your card is not risky for most banks (therefore, at the discretion of the bank, the operation can be blocked).

4. No need to confirm the origin of funds for small transactions, your bank already knows everything about you.

5. No Additional identification is required for card-to-card transfers or online card payments.

6. You can top up the card from the terminal with a card of up to 5K, a larger amount - only your own card with additional identification of a person.

7. Transactions over 400K require monitoring (with the prospect of blocking), but it is more than 150K provided for priorly.

8. Electronic wallets will function subject to identification by their owners (by the end of the year.

9. New subjects of financial monitoring: lawyers, accountants, realtors … It is likely for these new subjects to have the responsibility to verify the origin of funds.

10. Mandatory monitoring of transactions over 400K (instead of 150K).

11. To replenish the account through the cash cash for more than 5K additional identification is required.

12. The limit of transactions without opening an account is 15K, after which the additional identification is required.

"In general, we are talking about the introduction of a risk-oriented approach to monitoring financial transactions," - said Vladyslav Vlasiuk.

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