Selling Personal Items on OLX or "Shadow Business": What the Supreme Court Says and Why You Shouldn't Ignore Bank Inquiries

Recently, Ukrainians have become increasingly concerned about potential account blocking after selling goods on marketplaces such as OLX, Prom.ua, and similar platforms. These fears are primarily linked to the spread of misinformation on social media and an incorrect interpretation of legislative norms.

In reality, this concern is largely unfounded. Selling items through OLX, Prom, or any other online platform does not automatically trigger account verification. Banks only investigate financial transactions for signs of risk, as defined by financial monitoring legislation, in specific circumstances.

Therefore, isolated transfers to a bank card following the sale of personal items typically raise no questions. However, in other scenarios, a bank may request supporting documents or additional explanations.

Why the Myth Arose That Banks "Check OLX"

In recent years, messages about alleged mass checks of transfers after selling goods via OLX or Prom have become more prevalent online. This led many to conclude that banks had begun to control marketplaces directly or had access to every listing’s information. In fact, the mechanism operates differently.

A bank does not see precisely what a client sold, to whom they sent the goods, or through which site they found the buyer. The institution receives only information about the financial transaction: the transfer amount, sender, recipient, frequency of receipts, and other banking details.

When an individual sells their own television or a baby stroller once, for the bank, this is a regular transfer. A different situation arises when dozens of payments from various individuals regularly arrive in an account, often for approximately the same amounts. This is when the operation may attract the bank’s attention, not because the money originated from an OLX sale, but because its characteristics match risk criteria.

Why Banks Ask Such Questions

Banks' obligation to scrutinise certain financial transactions is legally mandated. According to the Law of Ukraine "On Prevention and Counteraction to Legalisation (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing the Proliferation of Weapons of Mass Destruction" No. 361-IX, banks are primary subjects of financial monitoring. This means they must analyse clients' financial transactions if these transactions indicate a risk of money laundering, financing illegal activities, or other breaches of legal requirements.

In other words, a bank’s task is to assess whether a particular financial transaction aligns with the client’s usual behaviour and whether it exhibits signs that the law defines as risky.

This is why the same transfer can be evaluated differently for two distinct individuals. For one client, it represents a regular sale of a personal item, while for another, it is one of dozens of regular transactions requiring additional verification.

When a Bank May Ask Questions

A bank’s responsibility is to focus only on those transactions that genuinely stand out or may indicate risks. This risk-oriented approach is enshrined in Article 7 of Law No. 361-IX.

There is another crucial point. Article 11 of this Law defines cases when a bank must conduct due diligence on a client. For example, if it concerns a one-off financial transaction amounting to 400 thousand hryvnias or more. However, the amount is far from the sole criterion. Even smaller transfers may pique a bank’s interest if they appear atypical or bear signs of risky operations.

Therefore, when a card effectively transforms into a trading platform, it may no longer resemble the sale of personal items but rather systematic trading. In such instances, the bank may ask for an explanation of the source of funds or request documents confirming their origin.

The tax authorities also emphasise that:

• The sale of individual property (personal items) is not considered grounds for financial or administrative liability for violating current tax

  legislation.

• Only systematic sales of a homogeneous assortment of goods simultaneously bear the hallmarks of entrepreneurial (business) activity. This does not apply to the sale of individual property (personal items) by citizens using electronic trading platforms such as OLX, Prom, and any social

  networks.

• Strengthening control over internet sales is implemented to prevent abuses and tax evasion specifically within the sphere of entrepreneurial activity.

Therefore, business entities operating "in the shadows" are urged to voluntarily bring their activities into compliance with legal requirements:

• Officially register as a business entity.

• Process payments through properly registered cash registers (RRO/PRRO).

• Comply with tax legislation to avoid future financial and administrative liability.

Do You Need to Prove to the Bank That You Sold Your Own Item?

If an individual occasionally sells personal items they no longer use, this is not considered entrepreneurial activity. An old laptop, a child’s bicycle, furniture after renovation, or a mobile phone are ordinary possessions that the owner has the right to sell to another person. The mere fact of receiving money for such an item does not automatically oblige the client to prepare a package of documents for the bank.

However, if an operation does attract the bank’s attention and it makes an inquiry, this inquiry should not be ignored. Typically, the financial institution asks for an explanation of the origin of funds or confirmation of the nature of the transaction. This is a standard financial monitoring procedure, not an accusation of the client violating the law.

If it concerns selling personal items through OLX or Prom, it is usually sufficient to provide something that confirms the fact of sale. This could include: screenshots of the listing, correspondence with the buyer, confirmation of order processing or delivery, an electronic receipt or delivery service invoice, or a bank statement showing the receipt of funds.

Can This Lead to Account Blocking?

A bank inquiry in itself does not mean the account will be blocked. It is important to distinguish between two different concepts. First – the bank contacts the client with a request to provide documents or explanations. During this time, the account may operate normally.

Second – the bank temporarily suspends the execution of a particular financial transaction or applies other measures provided by financial monitoring legislation. This is based on a combination of risk factors identified by the bank during transaction analysis.

What Does Judicial Practice Say?

Interestingly, the Supreme Court recently considered a dispute between a client and a bank that refused to execute transactions after the person failed to confirm the origin of funds. The plaintiff maintained that the bank acted without grounds, but the court disagreed.

In its ruling dated 1 July 2026, in case No. 331/194/25, the Supreme Court stated: if the bank requests documents within the framework of financial monitoring, the client must provide them. Failure to do so allows the financial institution to lawfully refuse to execute transactions or terminate account servicing.

Therefore, if the bank does ask for an explanation, it should not be perceived as an accusation. In most cases, providing a brief explanation and documents confirming the nature of the transaction is sufficient. Open communication with the bank usually allows the check to be completed quickly and helps avoid unnecessary problems.

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