"Zelensky's Thousand": Will government agencies gain access to your bank accounts and personal information?

The concerns of consumers were further fueled by MP Olha Vasyliievska-Smahliuk, Vice Chair of the Financial Committee of the Verkhovna Rada. She noted that through the “Winter eSupport” program, the authorities will attempt to determine the population size in Ukraine and identify men who are evading mobilization.

Prime Minister Denys Shmyhal also issued a warning regarding participation in financial support programs during the war. He pointed out that the government will conduct an audit to identify citizens who have unlawfully applied for financial aid, such as those who did so while abroad.

According to the Prime Minister, such individuals will be found and required to return the funds. “Therefore, we recommend not to abuse these opportunities,” said Shmyhal.

According to government explanations, during the registration process for financial support programs, citizens declaratively confirm that they are located in Ukraine, moreover — in the government-controlled territory. Subsequently, this information can be verified through registries, geolocation methods, and other means.

Will government authorities gain access to information about citizens' bank cards, specifically their balances and transactions, and is it safe to register for government support programs regarding the vulnerability of personal data?

Hromadske reached out to financial consultant Sofia Fedyniak for clarification. Here’s what she shared with us.

Using Bank Cards for Participation in the “National Cashback” and “Thousand from Zelensky” Programs

When registering for the “National Cashback” program and receiving the “Thousand from Zelensky,” users consent to the processing of specific personal data. According to the Cabinet of Ministers of Ukraine Resolution No. 952 from August 20, 2024, participants must:

1. Submit an application to participate in the project, providing personal details (full name, date of birth, taxpayer identification number, IBAN account number).
2. Consent to the processing of personal data and the transmission of information regarding payment transactions.

This means that certain information about your transactions may be accessible to the relevant government authorities to ensure compliance with the law. However, this does not provide full access to all your bank accounts or detailed information about them. The purpose of data collection is to ensure transparency and accurate cashback calculations.

It is important to note that providing such consents is a standard procedure when participating in government programs related to financial payments, allowing the government to monitor the targeted use of funds and prevent potential abuses.

Thus, by registering for the “National Cashback” program, you grant permission for the processing of specific personal data and information about payment transactions, but this does not imply full access for government authorities to all your bank accounts.

Typically, the term “specific information” in such programs refers to:

1. Personal data:

• Last name, first name, patronymic.
• Date of birth.
• Taxpayer registration number (TIN).

1. Financial information:

• IBAN account number.
• Information about completed payment transactions that participate in the program (for example, amounts and categories of expenses eligible for cashback).

1. Program usage data:

• Data regarding registration in the application or service related to the program.
• Data confirming your participation in the program through payment systems or banks.

1. Identification information:

• Data confirming your identity (for example, from documents used for registration).

1. Verifiable transactions:

• Transactions conducted using the card or account registered in the program.

Why is this data needed?

This data is used for:

1. Verifying your compliance with the program's conditions.
2. Monitoring the targeted use of funds (especially if the program is aimed at supporting specific sectors or services).
3. Protecting against fraud and misuse of the program.

What is NOT transmitted:

1. Account balance data.
2. Detailed history of all transactions.
3. Passwords or access data for bank accounts.

A specific list of data can always be found in the program's regulations or in the text of the consent you provide during registration.

Thus, the principles of banking secrecy must be upheld when servicing cards participating in such programs. Banks and financial institutions are obliged to ensure the confidentiality of their clients' data in accordance with Ukrainian legislation.

What does banking secrecy cover?

1. Account information:

   • Account number.
   • Account balance.
   • Transaction data unrelated to the program.

2. Personal data:

   • Identification information about the client (full name, passport number, TIN).

3. Financial transactions:

   • Information about the movement of funds, excluding operations directly related to the program.

4. Protection of personal data:

   • Banks are not entitled to disclose or transmit this data to third parties without the client's consent, except in cases provided for by law (for example, at the request of a court or law enforcement agencies).

How do population support programs work in the context of banking secrecy?

1. When registering for participation in the program, the client consents to the processing of specific data necessary for its functioning.
2. This data is limited to the list provided by the program (for example, information about payment for goods or services for cashback or bonuses).
3. No other information about the client's accounts (such as balance or details of other transactions) can be transmitted without the client's explicit consent.

What should be checked?

1. Program participation conditions. Carefully read the rules you are agreeing to.
2. Privacy policy. Learn what data is collected and how it is used.
3. Client rights. You have the right to clarify what data will be transmitted and for what purpose.

If in doubt, it is better to contact the bank or institution servicing the program directly and clarify all details regarding the processing of your data.

Why is adherence to banking secrecy principles a priority?

Adhering to banking secrecy principles is the foundation of trust between clients and financial institutions.

1. Confidentiality. Protects personal financial data from unauthorized access.
2. Economic freedom. Ensures the client's right to manage their finances without the risk of interference from other individuals or organizations.
3. Stability of the financial system. Citizens' confidence in the protection of their financial data fosters the active use of banking services and trust in financial institutions.

Why might government authorities take an interest?

Government authorities may be interested in citizens' finances for:

1. Monitoring compliance with the law. In particular, regarding tax reporting or combating money laundering.
2. Ensuring transparency. Within government programs or in cases of suspected financial violations.

How can citizens protect their finances from excessive scrutiny?

1. Carefully read the terms of participation in programs:

   • Find out what data is transmitted, who has access to it, and how it will be used.
   • Avoid participating in programs that entail unlimited data transmission.

2. Use separate accounts:

   • For participation in programs that require IBAN or transactions, it is better to use a separate bank account.

3. Consider alternatives:

   • For example, use e-wallets or financial services that offer additional layers of privacy protection.

4. Understand your rights:

   • You have the right to ask the bank or organization what data is being transmitted, to whom, and for what purpose.

5. Use services from reputable financial institutions:

   • Choose banks that strictly adhere to data protection norms and are known for their responsibility.

6. Pay attention to encryption and personal data protection:

   • Use passwords for online banking.
   • Do not share your card or account details with outsiders.