National Bank requires banks to not ignore requests from the ESB

The National Bank of Ukraine requires banks to not ignore requests from the Economic SecurityBureau of Ukraine (ESB) and to disclose clients' bank secrecy within 10 days of receiving a relevant request. Ukrainian banks are obligated to provide information regarding their clients' bank accounts and transactions in a timely manner, in the necessary volume, and in the specified format to the ESB — an agency that was established from the former tax police. Ignoring BEB requests is unacceptable.

This is stated in an internal letter from the National Bank of Ukraine, No. 24-0006/81883, titled "On Compliance with Deadlines and the Method of Providing Information in Response to Requests from the Economic Security Bureau of Ukraine," which was obtained by the publication "Krayina" and will be further analyzed by lawyers from LIGRO Law Firm.

The letter was sent in response to complaints from the ESB about untimely and improper information provision. The National Bank refers to a separate letter from the Bureau, which indicates that some banks fail to provide the required information about clients' banking operations on time or in the correct format, or they transmit this information via improper communication channels.

According to the document, banks must use a secure communication channel, the ARM-NBU Information System, to transmit information, adhering to security requirements such as encrypted correspondence and the use of an identifier. However, some financial institutions, as noted in the letter, are still sending data via regular mail, which is a violation of the regulations.

The National Bank emphasizes that banks must comply with ESB requests within 10 working days and provide specific information, including data about clients' bank accounts and transactions conducted for or on behalf of clients. This may include details of transactions made without the opening of accounts for a specific period or date, as well as information concerning individuals, legal entities, or individual entrepreneurs.

Additionally, the National Bank stresses the importance of ensuring confidentiality and guaranteeing the secure delivery of information when disclosing banking secrets. Information containing banking secrets should not be transmitted via unsecured channels, such as fax.

The letter also specifies that banks must not notify clients about ESB requests and must provide all the necessary data as required. If the information is not provided, is provided late, or is inaccurate or incomplete, banks may be held accountable.

"Given the above, we emphasize that failure to provide requested information to the ESB, knowingly providing false or incomplete information, violating the established deadlines and methods for providing information, or disclosing to third parties that such information is being collected, constitutes a violation of banking laws regarding the disclosure of information that constitutes banking secrecy. For these violations, the National Bank of Ukraine may impose sanctions," states the letter No. 24-0006/81883.

The specialists at LIGRO Law Firm will properly protect your banking secrecy in the event of its unlawful and unjustified disclosure. For a detailed consultation on this matter, please contact us at the provided phone numbers.