Since 2019, a law temporarily operated in Ukraine, according to which the status of PEP (Politically Exposed Persons – a person who holds an important public or political office and is the object of special financial monitoring of the banking system) was for life. This had negative consequences.

The overload of financial monitoring systems was constantly growing. After all, the number of objects of close attention increased with each new politician or official. Even if a person served one day in office and left for political reasons, he or she would receive a lifetime "red" risk group status. And while this is a rationalization with high-level officials, a huge number of low-ranking PEPs do not need lifetime scrutiny (much less long after leaving office) because they potentially have nothing to do with government money laundering schemes.

In addition, PEPs have lifelong problems in all areas of legitimate financial relationships, from insurance and home purchases to marriage and the birth of heirs. A politician or an official, as well as his family and business partners get lifelong headaches in banking institutions, refusals in loans or money transfers, inability to open a business, difficulties in buying a car or an apartment, registering marriage and inheritance. In Ukraine there are known cases when a bank simply informs such a client that it refuses further cooperation.

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financial monitoring