The National Bank of Ukraine is introducing a temporary restriction on card-to-card transfers in the amount of UAH 150,000 per month starting October 1. The limit will be in effect for six months and will not affect 98% of bank customers, the NBU said, UNN reports.
Starting from October 1, 2024, the National Bank of Ukraine temporarily sets a limit of UAH 150 ,000 per month for card-to-card transfers (also known as P2P, C2C) for six months. The limit applies only to outgoing transfers across all accounts of a client opened in the same bank to accounts of other individuals
The limit does not apply to the accounts of volunteers who meet the criteria set forth in the resolution and persons whose monthly income from verified sources exceeds the amount of the limit. It also applies to transfers of funds between the client's own accounts opened with the same bank and to transfers of legal entities. Transactions using IBAN details are not limited.
"According to the NBU, 98% of bank customers make monthly transfers that do not exceed the specified amount, so the restrictions will not affect their financial activity in any way," the regulator said.
What is the main purpose of the innovation?
The introduced limit will help minimize the use of payment infrastructure in illegal activities, in particular through the use of drop accounts, which are a common mechanism for the functioning of the shadow economy, the NBU said.
The NBU's analysis reportedly suggests that about UAH 200 billion a year may pass through the cards of "drops" (people who lend their accounts to third parties).
"The shadow business is looking for new ways to make cash payments, and this requires a quick response, so the NBU is introducing the limit as a temporary anti-crisis solution," the regulator said.
At the same time, the NBU pointed out that the problem is not only urgent but also complex and requires amendments to legislation and the involvement of other government agencies, including law enforcement agencies, to interact within their powers.
"The six-month restriction period will be used to develop joint solutions to address this issue. This will further allow the National Bank of Ukraine to abandon the introduced limits if the measures taken are effective," the NBU said.
The NBU has reportedly already prepared a list of solutions that it plans to implement to combat the use of the payment services market for illegal purposes.