Ukraine plans to create a financial base for citizens so they don’t lose a single penny
On February 2, the Verkhovna Rada of Ukraine refused to support draft law No. 14327, which would have enabled Ukraine’s integration into the Single Euro Payments Area (SEPA). The main goal of this bill was to facilitate and reduce the cost of transfers in euros. However, as it turned out, it also allowed the state to collect extensive financial information on each citizen.
Dmytro Oleksienko, executive director of the League of Auditors of Ukraine, noted that the Ministry of Finance was trying to create a mechanism that would allow state bodies to freely access all bank accounts, electronic wallets, and citizens’ safes.
SEPA is a single system for non-cash payments in euros that operates across most European Union countries, simplifying cross-border money transfers. Formal accession of Ukraine to this area could save the country and businesses up to 100 million euros in commissions.
However, the unacceptable points of the draft law did not concern the simplification of payment processes. They provided the Ministry of Finance with the right to create a centralized register of all bank accounts and safes, and required banks to report the opening or closure of accounts within 5 days. In addition, law enforcement agencies, including the SBU, the police, and the NABU, would have access to this data.
Although it was not formally planned to transfer information on account balances or transactions, the very availability of such data actually threatened banking secrecy.
The draft law also provided strict requirements for confirming financial transactions: documents certifying the origin of funds and confirming the conduct of the transaction would have to be provided. This would create significant difficulties for ordinary citizens, military personnel, displaced persons, and other persons who have lost their documents.
Experts warn that creating a single register of all accounts during a war is a dangerous step. Even with proper protection, such a database could become a target for cyberattacks or special operations by an aggressor country.
The rejection of the bill is currently a temporary measure to protect Ukrainians. However, this document will likely be submitted to parliament again, as it is part of Ukraine’s commitments under the 50 billion euro Ukraine Facility. It is important to note that this is not about banning transfers or the SEPA mechanism itself, but about creating a financial dossier on each citizen, which threatens privacy and security.
