Ukrainian banks block transfers: 3 mistakes to avoid.

The financial monitoring in Ukraine has become stricter. Banks can block clients' transfers if they notice a suspicious transaction. One minor mistake can lead to problems, but most Ukrainians do not think about the cause-and-effect relationships.

Lawyer Bohdan Yankiv explained the mistakes that may cause a bank to block a card in his blog.

Lack of payment purpose

This function is not used by all clients of financial institutions. However, correctly filling out the 'Payment Purpose' field minimizes the risk of monitoring and blocking. By documenting a large number of transactions without explanations, the bank will have grounds for additional questions. Depending on the purpose of the transfer, the following formulations are acceptable:

• 'Assistance to a relative';
• 'Repayment of a debt';
• 'Gift for a birthday';
• 'Share for utilities';
• 'Charitable contribution', etc.

'Filling out the payment purpose is the simplest way to protect yourself from the bank's suspicions. Spending just 10-15 seconds choosing the appropriate formulation significantly reduces the risk of account blocking and unnecessary questions from the financial monitoring service', Bohdan Yankiv stated.

Unacceptable formulations

Even if a person regularly specifies the payment purpose, it does not mean avoiding all suspicions. Some expressions should be avoided altogether; otherwise, there is a risk of triggering a bank check. For example, one should categorically avoid phrases like 'for crypto', 'currency exchange', 'for services', and others.

Firstly, such formulations indicate the conduct of activities without registering as an entrepreneur. Secondly, they suggest receiving income without paying taxes. Such words can not only lead to account blocking but also cause the unilateral termination of business relations with the client.

Financial monitoring in Ukrainian banks is becoming increasingly strict, and correctly filling out the 'Payment Purpose' field can help avoid problems with account blocking or additional questions from the financial monitoring service. Be attentive to the details of your transfers to avoid inconveniences from the banking system.