The National Bank has changed the procedure for forced withdrawal of funds
The National Bank of Ukraine has approved changes to the rules for making a debit transfer without the payer's consent. These are cases when funds are forcibly debited from the accounts of individuals or legal entities on the basis of requirements provided for by law.
First of all, the new rules concern the execution of payment instructions regarding collection of tax debt, however, the updated mechanism will also apply to other cases of forced withdrawal of funds in accordance with current legislation.
What will change for debtors
The main change concerns situations when the payer's account does not have enough funds to fully fulfill the collection requirement.
Previously, the bank could not execute the payment instruction due to the lack of the required amount on the account. From now on, the procedure will be different.
If there are insufficient funds, the financial institution will automatically monitor further receipts to the account and accumulate them until the amount is sufficient for full debiting in accordance with the instructions received.
Thus, the debt will be repaid automatically after accumulating the required amount.
Why is a new mechanism being introduced?
The National Bank explains that the main goal of the changes is to improve the efficiency of execution of debt collectors' payment instructions and to reduce the number of cases when the decision on forced collection is not actually implemented due to a temporary lack of funds in the account.
The new procedure will ensure continuous monitoring of the fulfillment of requirements without the need to re-send documents or additional procedures after each new receipt of funds.
The update of the rules became one of the stages of the introduction of the electronic mechanism of collection of funds for repayment of tax debt.
The new mechanism will work in accordance with international standards of electronic exchange of financial information and should make the interaction between banks and the State Tax Service faster and more automated.
It was the State Tax Service that initiated the introduction of relevant changes to the regulatory framework of the National Bank.
The NBU also clarified the rules for making payments
In addition to the changes to the mechanism of collection of funds, the National Bank has strengthened the requirements for drawing up payment documents.
In particular, the procedure for filling in details has been updated "Code of the payer / actual payer / payer for the fund transfer service" during payment:
Such changes should minimize the number of errors during the transfer of funds and ensure the correct identification of payers.
Banks have to adapt their systems
After the entry into force of the new rules, banks and other payment service providers received one month to update internal procedures and technical systems.
During this time, financial institutions must bring their processes in line with the regulator's new requirements to ensure automatic execution of the updated collection mechanism.
What this means for taxpayers
For citizens and businesses, the new rules do not introduce new types of tax obligations, but they change the order of execution of already existing decisions on debt collection.
If previously an insufficient amount on the account could temporarily postpone the fulfillment of the requirement, after the implementation of the new mechanism, the bank will automatically monitor the receipt of funds and carry out a debit immediately after accumulating the required amount.
In effect, this means that it will be more difficult for individuals who have tax arrears or other foreclosed debts to avoid enforcement of the relevant judgments simply because they do not have a sufficient balance in the account at a particular point in time.
At the same time, for payers who do not have tax debts or other grounds for forced withdrawal of funds, the usual procedure for using bank accounts does not change. Innovations are primarily aimed at improving the mechanism of execution of already valid collection decisions and increasing the efficiency of the banking system during their implementation.
EN
