Dollar bundles in Operation Midas: banks prohibited from issuing such amounts, Ukraine's National Bank says
The National Bank of Ukraine (NBU) has stated that Ukrainian banks are not allowed to issue the volumes of foreign currency seen in photos from searches conducted by the National Anti-Corruption Bureau of Ukraine (NABU) as part of Operation Midas.
Source: NBU response to an Ekonomichna Pravda enquiry
Quote: "Since 24 February 2022, banks have not been allowed to issue clients cash foreign currency in bundles of US$100 banknotes bearing the issuer's markings. NBU Board Resolution No.18 of 24 February 2022 establishes restrictions on daily cash withdrawals from accounts during the period of martial law in Ukraine: no more than UAH 100,000 per day may be withdrawn from an account in cash (the equivalent of around US$2,380 at today's NBU rate; a single bundle of US$100 banknotes contains a significantly higher amount)."
Details: The restriction applies to both individuals and legal entities, and banks are forbidden to circumvent it. The NBU added that it monitors compliance with these limits, including during inspections.
Quote: "When violations are identified, the NBU applies appropriate enforcement measures to banks. Fines may reach up to 1% of statutory capital, and bank officials may face disqualification. During inspections, the NBU examines any information that may be relevant for banking supervision."
Details: MP Yaroslav Zhelezniak previously claimed that state-owned Sense Bank may have been involved in money laundering linked to the corruption scheme in Energoatom procurements, and that Tymur Mindich – a figure in the NABU investigation – may have had influence over the bank.
According to the NBU, Sense Bank was indeed among the institutions that imported foreign cash into Ukraine. Seven other banks also carried out such operations: Oschadbank, PrivatBank, Raiffeisen Bank, PUMB, Pivdenny, KredoBank and RwSbank.
Meanwhile, the NBU said it had not detected any anomalies in the volumes of foreign-currency withdrawals or circulation.
"Regular analysis of banks' reporting data shows no abnormal spikes in foreign-currency cash withdrawals from client accounts that would require deeper analysis or additional supervisory measures," the NBU reported.
Background:
- Ukrainian anti-corruption agencies have exposed a large-scale corruption scheme in the energy sector in Ukraine, co-organised by President Volodumyr Zelenskyy's associate Tymur Mindich.
- On 10 November, information emerged that NABU detectives carried out searches at the homes of businessman Mindich and then justice minister Herman Halushchenko.
- Sources told Ukrainska Pravda that Mindich fled abroad hours before the searches.
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