The National Bank of Ukraine (NBU) has allowed the country's banks to block transactions and forcibly close accounts for refusal to provide information on the presence or absence of economic ties with Russia.
According to the Ukrainian news and analysis website Strana, the National Bank of Ukraine has allowed banks to block transactions and forcibly close accounts of Ukrainians for ties with Russia.
The regulator started demanding from financial organizations in March to check their clients, as well as their partners and counterparties for ties with Russia. They often refused to answer or did not provide all the necessary information.
After complaints from banks about such actions by customers, the Ukrainian Central Bank issued a clarification in which it allowed to stop operations, block or forcibly close customer accounts unilaterally, the newspaper said.
Ukrainian banks will be able to take such actions with customer accounts if they provided incomplete or unreliable information. In addition, financial organizations will have to store data received from clients and transfer it to the National Bank of Ukraine in case of requests from it.