A new financial monitoring has started operating in Ukraine since April 28. This is an innovation of the National Bank established by the Law of Ukraine "On Prevention and Counteraction to Legalization (Laundering) of Proceeds of Crime, Financing Terrorism and Financing the Proliferation of Weapons of Mass Destruction" No. 361-IX of 06.12.2019 (hereinafter - Law No. 361).

UAC partner law firm Crowe A&A Ukraine has clarified that it provides for new financial monitoring.

Law No. 361 (Article 14) establishes new requirements for the transfer of funds, as well as the procedure for conducting verification measures during payments.

Meanwhile, in the 18^th part of 14 of Law No. 361 identifies cases to which such new requirements of this article do not apply, namely:

1. cash withdrawal operations;
2. transfer of funds for the purpose of paying taxes, fees, payments, fees for compulsory state pension and social insurance, penalties and penalties for violation of legislation to the state and local budgets, the Pension Fund, to the accounts of public authorities, local self-governments or funds transfer for housing and communal services;
3. funds transfer when the payer (the initiator of the transfer) and the recipient are the entities of the initial financial monitoring  that provide the funds transfer services, and act on their own behalf and at their own expense;
4. funds transfer when electronic means of payment or electronic money are used to pay for goods or services and the number of the electronic payment instrument and / or prepaid multipurpose card accompanies the transfer along the entire flow of funds;
5. transfer of funds for an amount of less than UAH 30 thousand, or an amount equivalent to the specified amount, including in foreign currency, for crediting to the recipient's account solely for the purpose of payment for the goods, works, services, repayment of the debt on the loan, that the primary financial monitoring entity providing the funds transfer service to the payee can track through the payee using the unique cash transfer financial account number and identify the person who has contracted with the payee about the delivery of goods, performance of works, rendering of services, granting of credit;
6. the transfer of funds between the payer (initiator of the transfer) and the payee made through the intermediary, authorized to negotiate and enter into a contract of sale of goods or services on behalf of the payer (initiator of the transfer) or the payee;
7. operations to secure the transfer of funds provided by the operators of payment services;
8. cash transfers within Ukraine in the amount of less than UAH 5 thousand and no indications that such financial transaction is related to other financial transactions in the amount exceeding UAH 5 thousand.

It is on the basis of the last subparagraph that it can be concluded that only cash transfer and replenishment of card accounts within Ukraine in the amount of less than UAH 5000 without identification of the person who made the transfer is not subject to financial monitoring. At the same time, in the case of dvinding such a transaction for parts less than 5000 UAH, the banks should control them for the absence of signs of correlation of such financial transaction with other financial transactions in the amount exceeding 5000 UAH.

Thus, as of April 28, 2020, all transfers of more than UAH 5,000 will be monitored by banks and / or primary monitoring entities.

As for blocking donations for churches from the public, as mentioned above, all money transfers (including donations) in the amount of more than 5000 UAH. will be monitored by the bank (and / or the primary monitoring entities). Therefore, if this amount is exceeded and the payer or payee is not identified (see minimum information below), such funds may be blocked.

This means that donations can continue to be made, but at the appropriate expense of the church / charity, etc.

All transfers of funds within Ukraine up to 30 000 UAH must be accompanied by at least:

1. in relation to the payer - the account number / e-wallet or unique number of the electronic payment instrument of the payer (initiator) / prepaid multipurpose card, and
2. for the payee - the account number or unique payee / prepaid multipurpose card number, and in the absence of the invoice / e-wallet, the unique financial transaction account number.

The above conclusions are confirmed by the NBU's explanation in the letter dated April 13, 2020, No. 25-0006 / 18603.