PrivatBank freezes account of Ukrainian woman who bought cryptocurrency

PrivatBank freezes account of Ukrainian woman who bought cryptocurrency for 6.5 million hryvnia

The core of the conflict
PrivatBank decided to freeze the bank account of a client who conducted transactions totalling 6.5 million hryvnia, using it to purchase cryptocurrency. Despite providing all necessary documents confirming the legal origin of the funds, the situation proved more complex than it initially appeared.

The positions of the bank and the client

The client's arguments
According to her lawyer, the woman provided the bank with all supporting documents, including details on the origin of the funds. The representative also noted that the cryptocurrency purchase was made in accordance with the law, and the information provided should have resolved all questions regarding the transaction.

The bank's reaction
However, PrivatBank, citing current financial monitoring regulations, stated that the transaction raises reasonable suspicions. The primary reason was a significant discrepancy between the client's declared income and the volume of her financial transactions.

The court's view

The court, having reviewed the case materials, sided with the bank. According to its ruling, the client's declared income of 32,000 hryvnia per year raises doubts when conducting transactions that many times exceed her official income. This allowed the bank to classify the transactions as suspicious.

Legal aspects and possible consequences

Legislative framework
In accordance with Ukrainian legislation, banks are required to check large financial transactions of their clients for compliance with anti-money laundering laws. 

In cases where a client's income significantly does not match the scale of their operations, financial institutions have the right to freeze accounts and initiate investigations.