Ukrainian banks regularly verify their clients' information as part of financial monitoring – if a client fails to update their details in a timely manner, their account may be blocked.
This verification applies to both new and existing clients. According to the regulation "Approval of the Procedure for Banks to Conduct Financial Monitoring", the verification process includes client identification and verification. This enables banks to keep their data up to date.
Identification is the process of collecting essential client information, such as a passport or tax identification number.
Verification is the confirmation that the information indeed belongs to a specific individual, which often requires the client to be present in the bank.
There are several key reasons why banks may require a re-verification of data:
- Expiration of documents: If a client's documents are outdated, the bank has the right to request new ones.
- Regular checks: Banks periodically update information to prevent financial crimes, which is part of the requirements of financial monitoring legislation.
- Suspicion of document falsification: If there are doubts about the authenticity of the provided documents, the account may be temporarily blocked until the information is confirmed.
Verifications are also mandatory when:
- opening an account;
- conducting financial transactions;
- establishing business relations with the bank.
The frequency of data updates is determined by the National Bank of Ukraine and depends on the client's risk level:
- High risk level – verification is conducted at least once a year.
- Medium risk level – verification every 3 years.
- Low risk level – verification every 5 years, in the absence of suspicions.
These requirements should not be ignored to avoid account blocking.