Enhanced Financial Surveillance by NBU: Identified Transactions Under Scrutiny
Let's Dive into the New Banking Verification Regulations!
The National Bank of Ukraine is cracking down on suspicious activities with stricter banking procedures, as reported by Minfin. Here's what you need to know:
Banks will now need to scrutinize account activity, comparing it with past periods and documenting any sudden increases in the number or volume of transactions. They must also ensure that financial transactions align with the client's profile and activities, and match them with source of funds data.
Delving deeper, banks will be required to gather data on recipients of funds, including online transactions, and investigate the websites where clients make purchases or receive funds. The goal here is to uncover any connections to illegal gambling activities.
Banks must also check if their clients' operations involve aiding sanctioned individuals. Notably, the NBU has proposed limits for individuals on sending no more than 30 P2P transfers totalling up to 100,000 UAH per month. However, these limits are still under discussion, but banks must initiate enhanced monitoring immediately.
In the broader context, let's examine some global practices and legislative changes in Ukraine:
- With the implementation of electronic military documents, banks can cross-reference this data during identity verification.
- Critical infrastructure facilities, including financial institutions, must implement detailed risk assessments covering five types of risk, potentially influencing transaction monitoring frameworks.
Though not explicitly mentioned, some common enhanced verification practices include identity verification using government IDs with MRZ, barcode, and chip validation, biometric liveness detection, and a risk-based approach for high-risk users.
Transaction monitoring, source of funds verification, and P2P transfer limits are standard practices in these frameworks. For instance, geographic screening is used to block transfers to high-risk jurisdictions.
In conclusion, these new banking regulations aim to curb illegal activities and bolster financial security. Although direct guidelines regarding P2P transfer limits and specific account activity rules under Minfin’s guidance are scarce, ongoing digitization reforms in Ukraine may facilitate streamlined verification processes. For detailed and official requirements, consult Minfin’s publications or recent National Bank of Ukraine directives.
- The National Bank of Ukraine is mandating a closer review of transactions in banks, particularly P2P transfers, to ensure compliance with clients' profiles and activities.
- Banks are now required to collect data on recipients of funds from online transactions and investigate the websites involved in their clients' purchases or receipt of funds.
- The NBU has proposed a limit on the number of P2P transfers an individual can send each month, with a total of up to 100,000 UAH, although these limits are still under discussion.
- Banks must incorporate electronic military documents verification into their identity checks and perform detailed risk assessments on critical infrastructure facilities according to global practices.
- Standard practices in modern banking verification systems include various measures such as identity verification with government IDs, biometric liveness detection, and geographic screening to block transfers to high-risk jurisdictions.
