PrivatBank stopped cooperation with the client due to suspicious transactions for 4 million hryvnias: court decision

PrivatBank unilaterally terminated relations with the service user

The man learned that PrivatBank made a decision to refuse to continue business relations from its maintenance. During the inspection of the client, signs of a number of interconnected monetary transactions, atypical for his usual activities, were revealed. Circulations on the account have reached 4 million hryvnias since January 1, 2023. This is stated in the decision of the Sarna district court of the Rivne region, published on September 16, 2025.

In the period from January 2019 to June 2022, the man, as an individual, submitted applications to the bank to join the terms and rules of the provision of banking services, based on the results of which the bank provided account management and consumer lending services. On April 17, 2024, the bank made a decision to refuse to support business relations/refusal to provide services in accordance with the requirements of the first part of Article 15 of the Law of Ukraine “On prevention and countermeasures against the legalization (laundering) of proceeds obtained through crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction.” On April 18, 2024, he received a letter from JSC KB “PrivatBank” from which it follows that, based on the results of the assessment of business relations by the bank, risk criteria were identified that cannot be acceptable. Referring to the fact that the unilateral refusal of JSC CB PrivatBank from the banking service agreement concluded with it is illegal, since there were no grounds for establishing the appropriate level of risk, he considered that the termination of the agreement in this way violates his rights, and the act of termination of this agreement, in accordance with the requirements of Articles 203, 215 of the Civil Code of Ukraine, is invalid.

The representative of the commercial bank “PrivatBank” joint-stock company gave a response to the lawsuit, in which she did not recognize the lawsuit, and asked to refuse its satisfaction. The bank has a direct obligation to establish an unacceptably high level of risk of business relations with respect to clients and to refuse contractual relations by terminating the bank account agreement. During the inspection of the client, signs of a set of interconnected monetary transactions, uncharacteristic of the client’s usual activity, atypical activity on the client’s accounts were revealed. The service note of JSC CB “PrivatBank” dated 04/17/2024, compiled by the financial monitoring department and formatted in a template, provided a conclusion regarding the client on the refusal to support business relations. Since he has bank accounts both as an individual entrepreneur and as an individual, the refusal to serve the client applies to all his accounts.

“Circulations on the account since 01-01-2023 amounted to UAH 4 million. Initial financial assistance received in the amount of UAH 4 million, contribution to the authorized capital from the founder in the amount of UAH 10,000. Transfer of funds for conducting currency exchange operations in the amount of UAH 3.785 million, payment of an advance, for translation services, taxes. Taking into account the non-obvious economic feasibility of transactions on the client’s account, a request was sent to the client LLC “PODS” dated March 14, 2024. In response, the client provided a lease agreement, a description of activities, and an agreement on returnable financial assistance,” the case file states.

What did the court decide? The husband’s claim was satisfied. The court declared invalid the unilateral act of the commercial bank “PrivatBank” joint-stock company to refuse to support business relations by terminating the agreement, formalized by the decision dated 04/17/2024 in the part that concerns him as an individual.

“Assessing the legality of the reasons for the defendant’s termination of the agreement with the plaintiff, the court takes into account that the conclusion of the financial monitoring of the defendant dated April 17, 2024 on the termination of business relations was given taking into account the restrictions on the disclosure of bank secrecy. The studied conclusion lists the reasons for refusing to support business relations through the conduct of monetary transactions of PODS LLC EDRPOU 45391266. Defendant did not provide sufficient evidence to convince the court of the impossibility of fulfilling the duties specified by Law No. 361-IX or minimizing the identified risks associated with the individual or the financial transaction made by him. The defendant also did not prove that he had studied his activities as an individual and that based on the results of the study, the circumstances of his activities were found to be suspicious and fictitious. The defendant provided grounds for the termination of business relations with the plaintiff its request to “TRAK SERVICE SARNY” LLC and the response to this request. The defendant did not contact the plaintiff with an offer to provide an explanation on any issues of interest to the bank. JSC CB “PrivatBank” claims that the client’s activity is recognized as suspicious and that the founder of the company bears administrative and criminal responsibility for actions aimed at fictitious entrepreneurship, i.e., the creation or acquisition of business entities for the purpose of cover-up of illegal activities and the implementation of prohibited activities do not justify the termination of the bank account agreement with him as an individual. Under the specified circumstances, the unilateral act of the defendant on the termination of business relations, issued by the decision of 04.17.2024, should be declared invalid, the method of protection of the violated right by the plaintiff corresponds to the provisions of Article 16 of the Civil Code of Ukraine is considered effective by the court,” the court emphasized.

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