Financial monitoring is the set of measures taken by the state and by reporting companies (banks, payment services, virtual asset service providers and others) to prevent money laundering and terrorist financing.
In plain words
For you it shows up like this: a bank or payment service may ask you to explain the source of funds, provide a contract or documents, or pause a suspicious transaction. It is part of customer due diligence (KYC): identification, establishing the ultimate owner, understanding the purpose of the relationship and ongoing monitoring of transactions. The law also defines threshold financial transactions (from UAH 400,000 and on other grounds), which companies report to the specially authorised body. Give truthful information: violations lead to account blocking and liability.
Sources
- Law of Ukraine “On Prevention and Counteraction to Legalisation (Laundering) of Proceeds from Crime, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction” No. 361-IX of 6 December 2019 — Art. 1 (items 34, 66), Arts. 6, 11, 20 (version of 26 June 2026). Checked 14.10.2026.
Example. You suddenly receive a large sum from an unknown person and send it on at once. The bank may ask for explanations and supporting documents; it is best to answer fully and honestly.