A limit of 150 thousand hryvnias per month will be set for card-to-card transfers by individuals.
Starting October 1, 2024, the National Bank of Ukraine will set a temporary – six-month – limit for card-to-card transfers by individuals (also known as P2P or C2C).
This was reported by the press service of the NBU.
What will be the limit and who will not be affected by it
According to the information from the National Bank, a limit of UAH 150,000 per month will be set for transfers of individuals from card to card. It is noted that such a temporary limit will prevent the use of the payment infrastructure for illegal purposes. It will apply only to the original transfers – for all client accounts opened in one bank, to the accounts of other individuals.
At the same time, the limit will not apply:
- to accounts of volunteers who meet the criteria defined by the relevant regulation;
- to individuals whose monthly income from confirmed sources exceeds the amount of the established limit;
- when transferring funds between the client’s own accounts opened in the same bank;
- to transfers by legal entities.
Operations using IBAN details will also not be limited.
“According to the NBU, 98% of bank clients make monthly transfers that do not exceed the specified amount, therefore, the established restrictions will in no way affect their financial activity,” the NBU clarified.
Will the limit affect volunteer collections?
The National Bank is confident that the established limits will not affect the activities of volunteers. To verify this, the NBU even held several discussions with the volunteer community.
It is specified that based on their results the decision “was calibrated” and contains a corresponding clause that the limits will not apply:
- when replenishing the accounts of individuals engaged in volunteer activities and identified by banks/payment service providers as volunteers;
- when transferring funds from the accounts of individuals engaged in volunteer activities and identified by banks/payment service providers as volunteers;
It is noted that the above-mentioned resolution defines five criteria for belonging to volunteer activities.
In order for payment service providers to identify an individual who plans to engage in volunteer activities as a volunteer, he or she must meet at least two of the five criteria.
Why the NBU sets a limit on transfers
The National Bank believes that the introduced limit will help minimize the use of payment infrastructure in illegal activities, in particular, using “drop” accounts, which are a common mechanism for the functioning of the shadow economy.
In essence, “drops” are people who, for a fee, transfer the details and data of their card accounts to third parties for use. Such accounts are used as “transit” for the transfer and “laundering” of illegal funds.
“The scale of the problem of using “drops” is difficult to assess due to the imitation of the normal behavior of an individual, but in general, in the system we are talking about tens of thousands of “dormant” and already active accounts. According to several major banks, in 2024, business relations were already terminated with more than 80 thousand clients based on participation in drop schemes,” the NBU said.
It is noted that the amount and number of card-to-card transfers shows a steady growth trend in all groups of banks – regardless of the volume of the card business.
The NBU analysis shows that about UAH 200 billion per year can pass through “drop” cards.
“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 press service of the National Bank emphasized.
It is specified that some participants in the payment market are already implementing effective rules, indicators and models for analyzing transactions to identify atypical customer behavior, but these practices should become mandatory for the entire payment market.
Since this problem is urgent and complex, it requires amendments to the legislation and the involvement of other state bodies, including law enforcement agencies, to cooperate within their powers.
“The introduced period of restrictions for a period of six months will be used to develop joint solutions aimed at solving this problem. This will further allow the NBU, subject to the effectiveness of the measures taken, to abandon the introduced limits,” the bank said.
Other solutions to combat fraudsters
According to the National Bank, the following steps are planned in the future to combat the use of the payment services market for illegal purposes:
- adopting bill No. 11043, which provides for an increase in the amount of fines for violators of payment legislation and ensures conditions for the prompt exchange of data with the Cyber Police;
- introducing legal norms to hold accountable the organizers and conscious participants of illegal schemes;
- creation of a register that will become a source of information for banks when establishing business relations and servicing clients whose cards were used in illegal schemes (as well as developing rules for working with it);
- amendments to payment legislation that will expand the regulatory powers of the NBU to apply measures of influence and restrictions to market players that do not ensure effective combating of existing and new schemes;
- tightening requirements for banks and non-banking institutions regarding strict compliance with legal requirements and establishing effective operation of their own automated systems;
- creation of indicators, rules and models for identifying atypical customer behavior;
- increasing the efficiency of risk management systems and internal control systems in accordance with the requirements and recommendations of the NBU.
What are P2P transfers
Card-to-card transfers or P2P payments (person-to-person) are financial transactions in which money is transferred from one person's bank card to another person's card. Such transfers are usually carried out through mobile banking applications or specialized services, which allows you to quickly transfer and receive funds.
Who are “drops”
“Drops” are individuals who, for a fee, provide criminals with access to their bank cards and accounts. These payment instruments are used as transit means for transferring funds between other accounts, which helps criminals confuse their tracks and complicate the work of law enforcement agencies when investigating crimes.
Recall that The NBU has relaxed and clarified currency restrictions.
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