Ukraine Plans to Create a Register of Droppers: Ukrainians May Have Their Pensions Blocked
An official register of droppers—individuals who hand over their bank cards to others for dubious financial transactions—may soon be established in Ukraine. Inclusion in such a list will mean strict limitations on financial activity: blocking of pensions, social benefits, as well as the inability to obtain loans or open new accounts even at other financial institutions.
This is reported by AgroReview
What Restrictions Await Droppers
The initiative to create a register of droppers has been agreed upon by the National Bank of Ukraine and the relevant committee of the Verkhovna Rada. A draft law that provides for such changes is expected to be registered in the coming days. Once it comes into effect, individuals who find themselves on this list will effectively lose the ability to use most financial services: their transactions will be limited to the essentials, banks will no longer grant them loans, and new accounts will either not be opened or will come with strict limitations.
The goal is to stop widespread schemes of financial crimes where front persons provide their cards for money laundering, drug trafficking, or financing terrorist activities. “When a person hands over their card, and this is recorded, they end up in the register of droppers. Their financial operations are significantly restricted to basic ones. Banks will no longer lend to them, and new accounts will either not be opened or will function with substantial restrictions,” noted Hetmancev.
The Scale of the Problem and Consequences for Citizens
The phenomenon of droppers has become a serious problem for the Ukrainian banking system. Malefactors often offer citizens money for handing over their cards, without warning them about the possible consequences. Although most people understand the risks, they still agree to participate in illegal schemes.
Once an individual is added to the register of droppers, their pension, social benefits may be blocked, and they may face restrictions on making transfers or receiving salaries on their card. Banks will refuse to open deposits, new accounts, and loans.
In the future, financial institutions will automatically check their clients against the register of droppers before opening accounts or conducting transactions. This means that participation in such schemes could deprive a person of access to financial services for an extended period.
According to estimates from the banking sector, by 2025, between 10% and 20% of new payment cards in Ukraine may be used in fraudulent drop schemes. The volume of transactions using such cards reaches tens of billions of hryvnias, and since the beginning of the year, about 100,000 compromised cards have already been identified.
“Never give your card to anyone. You will end up in the register of droppers and won’t even be able to receive the pension you honestly earned,” warned the MP.