Ukraine’s parliament advanced two bills Nov. 10 to align financial oversight with European standards, steps the Finance Ministry says are required before the country can apply to join the Single Euro Payments Area (SEPA).
The Verkhovna Rada, Ukraine’s parliament, gave Bill No. 14327-д 249 votes at first reading. A companion measure, Bill No. 15503, received 258 votes, also at first reading. The Finance Ministry said both bills must win final approval before Ukraine can submit an official SEPA application.
Bill No. 14327-д would create a register for bank accounts and safe-deposit boxes, revise beneficial-ownership checks and strengthen protections for people who report financial crime, parliament said. The Finance Ministry said the register would contain account IBANs, owners’ names and banks’ names, but no balances, transaction histories or safe-deposit-box contents. Under a parliamentary finance committee proposal, three agencies would have direct access to the register. Parliament said those access powers could begin no earlier than six months before Ukraine joins the European Union.
The European Payments Council says its credit-transfer and direct-debit schemes are available in 41 countries and territories. Its admission criteria require substantially equivalent anti-money-laundering processes and a decision on a country’s eligibility before payment providers can apply to participate.
The Finance Ministry estimates SEPA participation could reduce bank fees by €70 million to €100 million a year. It identified Ukrainians in EU countries who send money home and businesses dealing with European customers as potential beneficiaries, and said intermediary bank fees are among the current costs.
Lawmaker and bill co-author Olha Vasylevska-Smahliuk told The Kyiv Independent the vote was “a good first step” but should have come a year earlier. Bill No. 14327-д is being prepared for a second reading; its bill record lists no date for the vote.
