Monobank Under Investigation by Ukraine's Central Bank Over Client Data Breach.

Scrutiny of Co-Founder's Actions

According to TSN.ua: Ukraine's National Bank (NBU) has launched an investigation into the actions of Oleg Gorokhovsky, co-founder of Monobank, following his public disclosure of a client's personal information. The financial regulator has formally requested an explanation from the bank regarding the dissemination of what may constitute confidential banking data. This probe highlights the tension between corporate actions and consumer privacy rights in Ukraine's digital banking sector.

The investigation was triggered after Gorokhovsky posted a client's photo on his Threads social media account, accusing her of holding pro-Russian views. The client, Karina Kolb, had undergone a video verification call with a background that Gorokhovsky claimed featured a Russian flag. In response to this, Monobank blocked her account, citing the presence of symbols associated with the aggressor state.

National Bank of Ukraine's Formal Response

The NBU has sent an official inquiry to Monobank demanding clarification on the circumstances of the information leak. The regulator referenced its Resolution No. 346, which outlines sanctions and mechanisms for addressing violations. It emphasized that

"within the framework of its consumer protection mandate... such information may constitute a banking secret"

Should the supervisory review uncover any violations, the regulator stated it may apply legally prescribed enforcement measures against the bank. Meanwhile, client Karina Kolb has countered that the flag visible during her verification was Slovenian, not Russian. This claim has raised further questions about the bank's actions and the justification for the account freeze.

The incident remains under intense scrutiny, and the outcome of the NBU's investigation could have significant implications for both Monobank and Gorokhovsky. This case underscores the critical importance of client data confidentiality in financial institutions, particularly given the heightened sensitivity around national security and identity in Ukraine. The NBU's review may set an important precedent for other Ukrainian banks, demonstrating that consumer rights violations can carry serious consequences. The final resolution of this matter could also impact Monobank's reputation and the level of trust clients place in its services.