Lifting Banking Secrecy in Ukraine: What Is Changing

Banking secrecy has traditionally been perceived as one of the key guarantees of an individual’s right to privacy. Information about accounts, cash flows, and financial obligations remained under special protection for decades. However, recent years show that this institution in Ukraine is gradually transforming. The state is expanding both the grounds and the range of authorities with access to financial data, while the idea of “full financial transparency” is increasingly voiced by public officials. This does not mean that banking secrecy is being abolished, but it does indicate a shift in the balance between privacy and state control.

Ukrainian law still clearly defines banking secrecy as information concerning clients’ accounts, funds, transactions, contracts, and other financial data. Such information may be disclosed only in cases strictly prescribed by law: with the client’s consent, on the basis of a court decision, or upon a lawful request from authorities explicitly empowered to obtain it. At the same time, over the past five to seven years, both the list of such authorities and the scope of accessible information have expanded significantly. Anti-corruption bodies, the tax service, enforcement officers, notaries, and financial regulators have received broader tools to work with banking data.

International commitments have also played a substantial role in changing the approach. Ukraine’s accession to FATCA and CRS standards entails the automatic exchange of financial information with other states. In practice, this removes part of the barriers for foreign tax authorities to access data on Ukrainian residents, and vice versa. In addition, legislative changes adopted in 2023–2025 expanded the possibilities for disclosing banking secrecy in the interests of the state, including in disputes related to military aggression, where the Ministry of Justice obtained the right to request information directly from banks.

The most debated issue remains the role of the tax authorities. At present, the tax service may obtain basic information about the existence of bank accounts without a court decision, but access to transaction data is possible only through court proceedings. Courts therefore remain a key safeguard against abuse. The case law of the Supreme Court confirms that any authority requesting the disclosure of banking secrecy must prove its legal powers and the necessity of such interference. At the same time, the state is openly discussing the expansion of extrajudicial access for tax authorities to financial data, an idea strongly opposed by the NBU, which views banking secrecy as a cornerstone of public trust in the financial system.

In parallel, the NBU has focused on another dimension — the digitalization of procedures. This is not about expanding the range of authorities entitled to access information, but about transferring information exchange into a fully electronic format. Requests, responses, and data transfers are gradually moving to a paperless regime with clear technical standards. While this simplifies interaction between banks and public authorities, it also raises the requirements for cybersecurity and data protection.

For individuals and businesses, these changes bring not only administrative convenience but also new risks. The broader the access to financial data, the higher the likelihood of abuse or data leaks. Another significant risk is a decline in trust in the banking system, when people begin to perceive it as entirely “transparent” to the state.

In this context, legal protection remains crucial. It is important to understand the limits of authorities’ powers, to insist on compliance with legal procedures, and not to ignore court notices related to the disclosure of financial information. If banking secrecy is unlawfully disclosed, Ukrainian law provides for both liability of the responsible parties and the client’s right to seek compensation for damages.

Banking secrecy in Ukraine is not disappearing, but it is clearly evolving. The trend toward greater financial transparency is part of broader global practice. The state’s task is to ensure that this process does not turn into an instrument of excessive control, while the task of citizens and businesses is to know their rights and be able to defend them. The future of the financial system lies precisely in maintaining this balance between transparency and the protection of privacy.