Banking Secrecy Lifted for Oversight Bodies as Ukraine Moves to Join SEPA.

Draft Law No. 14327: Paving Ukraine’s Path into European Financial Networks

According to TSN.ua: Ukraine is taking a major step toward aligning with European financial standards. A draft law currently under review by the Verkhovna Rada Committee would integrate the country into the Single Euro Payments Area (SEPA), a unified payment zone used across Europe. This initiative aims to establish a centralized registry of bank accounts, significantly expanding access for regulatory authorities to financial data. Under the SEPA framework, over 500 million potential users could benefit from simplified and secure payment transactions.

Key Provisions of the Draft Law

The legislation also proposes creating a registry of personal bank accounts and safety deposit boxes. Access to this registry would be granted to the following bodies:

• National Anti-Corruption Bureau of Ukraine (NABU)
• State Bureau of Investigation (SBI)
• Security Service of Ukraine (SBU)
• National Police
• Prosecution authorities
• Enforcement Service
• Private enforcement officers

According to the draft’s authors, this would enhance financial transparency across the country and create stronger conditions for combating financial crimes.

Additionally, the draft law includes amendments to the Labor Code and procedural codes concerning whistleblowers in the field of financial monitoring. These changes are designed to protect individuals who report potential violations.

At the same time, Draft Law No. 14327 introduces severe penalties for non-compliance. Submitting knowingly false information about ultimate beneficial owners would carry a fine of 510,000 hryvnias. Late submission of required information would result in a fine of 170,000 hryvnias.

It is worth noting that on March 10, the Verkhovna Rada rejected a separate bill on taxing income from digital platforms, highlighting the challenges of implementing financial reforms in the country. Draft Law No. 14327 could mark a pivotal step toward integrating Ukraine into European financial systems and improving oversight of financial flows.

The adoption of Draft Law No. 14327 could significantly reshape Ukraine’s financial landscape by fostering greater transparency and control over financial operations. It may also boost the country’s investment appeal, as integration into European payment systems opens up new opportunities for businesses. However, successful implementation will require thorough preparation by both state agencies and the private sector to ensure the new system functions effectively.