Alternative draft law No. 13233-1 without excessive control to protect business during the war

On 14 May 2025, the Verkhovna Rada registered an alternative draft law No. 13233-1, which was a direct response to the government's initiative No. 13233. Both documents are aimed at adapting Ukrainian legislation to the requirements of the European Union, in particular in the context of joining the Single Euro Payments Area (SEPA), but differ significantly in their philosophy.

The government's version, despite its technical purpose, has raised concerns among the legal and business community due to proposals that significantly weaken institutional guarantees of bank secrecy. Draft Law 13233-1, on the other hand, attempts to find a compromise between integration into the European financial system and preservation of fundamental rights of citizens.

Key provisions removed from the government's draft law

One of the most important features of the draft law No. 13233-1 is the deliberate removal of a number of provisions contained in the main government draft and assessed by the authors of the alternative as excessive or carrying systemic risks. Let's take a closer look at these provisions:

1. Refusal to create a register of accounts and individual bank safes of individuals

The government's draft law No. 13233 provided for:

Establishment of a single centralised state register, which would receive data on the opening, closing and maintenance of all accounts of individuals (including e-wallets).

Similar information was required for lease agreements for individual bank safes.

All this data was to be received automatically, and access to it would be granted to authorised state bodies (NABU, NAPC, ARMA, BES, State Enforcement Service, etc.) without a court order, only on the basis of so-called ‘special access’.

The alternative draft law excludes these provisions because:

· There is no clear mechanism for protecting personal data and banking secrecy. The transfer of such a large amount of information to a single register administered by the State Tax Service is an unprecedented practice that creates risks of abuse.

· There is a direct threat of loss of confidence in the banking system as such - especially in terms of deposits, confidentiality of safe deposit boxes, and private property rights.

· Similar registers exist in some EU countries, but access to them is strictly regulated by court decisions or specialised supervisory authorities, while the government's version of the STS effectively becomes an uncontrolled centre for processing confidential financial information.

2. Elimination of the obligation to notify the STS of opening/closing accounts and safe deposit boxes

The government's draft law would introduce a direct obligation for the National Bank of Ukraine, banks and other financial institutions (including non-bank payment service providers and issuers of electronic money) to notify the State Tax Service of each fact of opening or closing an account, e-wallet, or entering into or terminating a bank safe deposit box agreement.

This would create:

· constant ‘submission’ of updates to the tax authority's database, even without a request;

· legal uncertainty: can such actions be considered indirect control over the movement of funds without a court decision?

· risks for entrepreneurs using multi-currency, international or electronic payment instruments (e.g. Payoneer, Revolut, Wise).

The alternative draft law No. 13233-1 rejects this approach, emphasizing:

· preservation of financial privacy mechanisms;

· the lack of legal grounds for universal notification of tax authorities about private financial activities of an individual without consent or court permission;

· the impossibility of effective implementation of such a system in the context of limited state resources, cyber risks and the ongoing war.

Conclusions

Thus, the alternative draft law does not deny the need to harmonise Ukrainian legislation with European standards, but opposes the creation of instruments for mass collection of financial information that:

· do not have proper judicial or parliamentary control;

· can be used to put pressure on businesses or citizens;

· undermine the very essence of banking secrecy, which, according to European practice, belongs to the category of rights protected by international law and the Constitution.

In this regard, the removal of these provisions from the alternative draft law is not only legally justified, but also a politically expedient step that takes into account the realities of the Ukrainian economy during the war and the challenges associated with its recovery.

In the further legislative process, it is important that the discussion of both draft laws No. 13233 and No. 13233-1 becomes a platform for a balanced assessment: between the need for transparency and the principles of the rule of law.