Current Issues Regarding Bank Secrecy Disclosure in Ukraine

The issue of protecting bank secrecy remains highly sensitive for both individuals and businesses in Ukraine. Information regarding banking operations, income, cash flow, and savings can potentially be misused, even if the person involved has not committed any wrongdoing. The issue here is not about hiding wealth but about upholding the constitutional right to privacy and the confidentiality of commercial activities.

Legal Framework

Under Article 60 of the Law of Ukraine No. 2121-III On Banks and Banking Activities, any information related to a client’s financial activities that becomes known to a bank during service provision or through its legal functions is considered bank secrecy.

This includes, but is not limited, to:

• Bank account details of clients, including correspondent accounts with the National Bank of Ukraine (NBU);
• Information on transactions conducted on behalf of, or for the benefit, of clients;
• Details of contracts and financial standing;
• Information about the internal structure of legal entities (corporate clients), their leadership, business focus;
• Commercial data such as project plans, inventions, prototypes, or other sensitive business information.

Further rules for the handling, protection, and disclosure of such information are laid out in the Regulation approved by the National Bank of Ukraine Resolution No. 267 of 14 July 2006.

Although the disclosure process is formally regulated (notably by Article 62 of the Law and the aforementioned Regulation), amendments have been frequent – typically aimed at expanding both the list of public authorities entitled to access and the scope of data that can be requested.

Disclosure to Law-Enforcement Agencies

In theory, a court order or the written consent of the account holder should be the primary grounds for accessing bank secrecy. However, in practice, law-enforcement agencies frequently obtain such information through written requests – without any judicial oversight.

Ukrainian authorities that can request this information include:

• The Prosecutor-General’s Office;
• The Security Service of Ukraine (SBU);
• The State Bureau of Investigation (DBR);
• The National Police;
• The National Anti-Corruption Bureau (NABU);
• The Economic Security Bureau;
• The National Agency on Corruption Prevention (NACP);
• The Asset Recovery and Management Agency (ARMA);
• The Antimonopoly Committee of Ukraine.

These agencies can access detailed information about both individuals and legal entities, including:

• Account presence and numbers;
• Unique identifiers or card numbers;
• Balances and transaction flows;
• Counterparty data (including account numbers and payment purposes);
• Identifiers of payment service providers.

Despite Article 162(1)(5) of the Criminal Procedure Code of Ukraine classifying bank secrecy as protected information, law-enforcement agencies may access it through direct written requests – not via judicial authorization. In our opinion, such access should only be permitted within criminal proceedings. However, since many criminal cases in Ukraine are opened based on general suspicions and may last years without formal charges, bank data can be obtained even about persons with no actual involvement in criminal offenses.

Therefore, we recommend legislative amendments that would make court approval mandatory – at least for persons not officially suspected of criminal activity.

Access by Tax Authorities

The tax authorities in Ukraine currently have limited access to banking secrecy. They can only request specific data under narrow circumstances, such as:

• Ownership documentation of non-resident businesses operating in Ukraine;
• Requests from foreign tax authorities on the basis of international tax agreements.

However, in late 2023, discussions intensified over the potential expansion of the powers of the tax authorities to access information about account balances and cash flows.

This was largely driven by Ukraine’s commitments to the International Monetary Fund (IMF), particularly in the context of managing public debt in wartime. In December 2023, the Cabinet of Ministers of Ukraine approved the National Revenue Strategy till 2030, which includes the following provision (Clause 4.2.3(b)): “Implement measures to secure the use of data and ensure access to information about account balances and turnover of taxpayers.”

The strategy envisions enabling access for the State Tax Service (STS) to this information between 2025 and 2027, including data on electronic money, via mandatory disclosure by banks and financial institutions.

This policy is still at the development stage, though legislation may be introduced soon. While such access could increase tax revenues, it may also provoke backlash from the public and the business community due to fears of corruption, abuse of power, and pressure on taxpayers – factors that could undermine trust in government and deter investment.

International Exchange of Financial Information

It is also important to note that Ukraine already receives information about foreign accounts through the use of international agreements. Ukraine has signed numerous bilateral treaties on avoidance of double taxation and mutual administrative assistance in tax matters, which enable the exchange of information.

Additionally, on 28 April 2023, Ukraine adopted Law No. 2970-IX, which implemented the Common Reporting Standard (CRS) for automatic exchange of financial account information. Ukraine officially joined the CRS system and carried out its first data exchange in September 2024.

That exchange included:

• Individual accounts with a balance exceeding USD 1 million as of mid-2023;
• Accounts opened after June 30, 2023.

By September 2025, all individual accounts (regardless of the balance) and the accounts of legal entities, which exceed USD 250,000 (as of 31 December 2024) will be included.

Legal Support and Risk Mitigation

If your accounts or transactions might attract the attention of law-enforcement agencies or tax authorities, it is highly advisable that you consult proactively with legal professionals. They can help analyze your situation, reduce legal risks, and manage potential consequences.

If you are already the subject of such inquiries, qualified legal representation becomes essential.