Transfers to relatives and financial monitoring: what documents might the bank ask for

This is reported by “Informator”, citing an explanation from lawyer Bohdan Yankiv. A zero tax rate for inheritances and gifts from first- and second-degree relatives is provided for under Article 174 of the Tax Code of Ukraine.

You can transfer money to your mother, child, brother, sister, grandmother, grandfather or grandchildren without paying personal income tax.

According to lawyers, the zero personal income tax rate applies to transfers between first- and second-degree relatives. First-degree relatives include parents, a husband or wife, and children, including adopted children. Second-degree relatives include siblings, grandparents and grandchildren.

In other words, if a person regularly transfers money to their mother or child for support, this does not automatically give rise to a tax liability.

At the same time, the absence of tax does not mean that the bank cannot ask questions. Taxation and financial monitoring are different control systems.

Why a bank might check a transfer

The bank may take an interest in a transaction if it appears unusual for the customer’s financial behaviour, does not correspond to their verified income, or shows signs of being risky.

Questions may arise regarding both the sender and the recipient of the funds.

If the customer fails to provide documents in response to a financial monitoring request, the bank may restrict transactions or block the account until the circumstances are clarified.

What you need to prepare for the bank

Lawyers advise having documents ready in advance that confirm two things: family ties and the lawful origin of the funds.

To confirm kinship, you may need a birth certificate, a marriage certificate (if the surname changed after marriage), or other documents that directly show the relationship between the sender and the recipient.

Simply stating “this is my mum” or “this is my child” may not be sufficient for the bank.

To confirm financial status, you may need an income statement from your employer, a tax return, documents regarding work abroad, or other proof of the source of funds.

If a person works in Ukraine, an income statement may be the main document. If they receive income abroad – a contract, tax return or other official documents from the country where they work.

What limits apply to transfers

In 2026, banks apply limits on outgoing card transfers depending on the customer’s risk level and the availability of verified income.

According to reports on the interbank memorandum, for high-risk clients the limit may be up to 50,000 UAH per month, and for low- or medium-risk clients without verified income – up to 100,000 UAH per month. If income is documented, the bank may process transfers within the limits of the verified income.

Such limits do not mean that every transfer to a relative will automatically become a problem. However, if the amounts are large or the transfers are regular, the bank may ask for an explanation and supporting documents.

When problems may arise

The most common reason for the bank to ask questions is a discrepancy between a person’s official income and the amounts they transfer or receive.

For example, if a customer has no verified income but regularly sends significant sums, the bank may consider such transactions to be risky.

Simple explanations such as “help for relatives”, “debt repayment” or “family money” do not always work. If the bank asks for documents, it is best to provide them in full.

Problems with financial monitoring at one bank can affect future service at other institutions if the customer is classified as high-risk.

What is important to remember

Transfers between close relatives are not the same as payments from third parties.

Money from third parties may be treated as taxable income or as transactions requiring further explanation.

Banks have the right to request documents regarding suspicious or unusual financial transactions. In the event of serious suspicions, information may be passed on to the relevant authorities, in particular the State Tax Service, the State Financial Intelligence Service, the State Bureau of Investigation or the Security Service of Ukraine.

Therefore, the best protection for a client is not to wait for an account to be frozen, but to have the necessary documents ready: proof of family ties, sources of income and a clear explanation of the purpose of the transfers.

As reported by ThePublic, a proposal has been put forward in the Verkhovna Rada to clarify the rules for recovering inflation losses on overdue monetary debts during martial law. For the average citizen, this means one simple thing: if a debtor delays repayment, they must compensate not only for the debt itself but also for the loss in value of that money due to inflation.

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