Banks Will Check Enforcement Requests Every Hour: Ministry of Justice Updated the Procedure for Seizing Debtors' Funds and Electronic Money
Enforcement proceedings in Ukraine are gradually transitioning to a digital format. Whereas previously automated account arrest mostly meant blocking the debtor’s funds, the state is now moving towards a full digital mechanism for seizing money held in accounts or electronic wallets.
This is the purpose of the Order of the Ministry of Justice No. 1837/5 dated July 9, 2026, adopted in implementation of Law No. 4833-IX on the digitalization of certain stages of enforcement proceedings. The document effectively restructures the interaction algorithm between state and private enforcement officers, banks, non-bank payment service providers, and electronic money issuers. The order comes into force on the day of its official publication.
More details about what the document entails can be found in the article by the "Judicial and Legal Newspaper".
From automatic arrest to automatic collection
The main change lies in the approach to enforcement. Previously, the procedure provided for automated arrest of debtors' funds. The new version of the document speaks of seizure of funds and electronic money, covering the entire cycle of enforcement actions—from identifying the debtor’s accounts to forced debiting of funds and transferring them to the claimant.
Automation is not limited to account blocking. According to the new Order, it covers all key stages of enforcement: obtaining information about the debtor’s accounts, imposing arrest, generating payment instructions, forced debiting of funds, redemption of electronic money with subsequent transfer to the account of the state enforcement service or private enforcement officer.
Essentially, this means creating a single digital chain for executing court decisions without paper document flow among most participants.
Not only banks are connected to the system
Previously, automated arrest applied mainly to bank accounts. Now the circle of participants has expanded. The new procedure applies to:
- banks
- non-bank payment service providers
- electronic money issuers
- other financial institutions.
Thus, digital interaction will cover virtually all financial services authorized by law to open accounts or electronic wallets for users. It is worth noting that state or private enforcement officers will be able to obtain information about electronic wallets, not just classic bank accounts, and, if justified, initiate seizure of electronic money as well.
All interaction through an automated system
The main tool becomes the Automated Enforcement Proceedings System (AEPS). It will be used to generate all procedural documents, such as requests regarding debtor accounts, arrest orders, orders to lift arrest, payment instructions, and other enforcement documents.
Information will be transmitted via application programming interfaces (APIs), ensuring automatic data exchange between AEPS and financial institutions' information systems. Electronic interaction must use cryptographic information protection means, and the authenticity of all messages will be confirmed by qualified electronic seals. In other words, the human factor in document transmission should be minimized.
Banks have only one hour
One of the most notable innovations is the processing time for electronic documents. From now on, information systems of banks and other payment service providers must check hourly for new documents from enforcement officers. Upon receiving an electronic request, the financial institution must immediately confirm its acceptance for execution, and the responsible person must promptly begin the necessary procedures.
There is also a requirement to respond to the information request no later than within one working hour. After that, the bank must provide a response indicating whether the debtor has accounts or electronic wallets, their details, account type, and the balance of funds or electronic money.
Effectively, the state is moving to a model of almost instant access to information about the debtor’s assets. The innovation should significantly reduce the time between opening enforcement proceedings and the actual application of enforcement measures.
How the new mechanism will work: what will change for debtors, banks, and enforcement officers
One of the key innovations of Ministry of Justice Order No. 1837/5 is the actual change in the enforcement model. Whereas previously the regulatory act mainly regulated automated arrest of funds, it now covers the full cycle of seizing the debtor’s funds and electronic money.
In other words, digitalization of enforcement proceedings is moving to a new level. State or private enforcement officers now have the ability not only to identify the debtor’s accounts and impose arrest but also, after completing all legally prescribed procedures, to initiate forced debiting of funds.
Forced debiting will become automated
This mechanism is the most significant practical change in the document. The order provides for the creation of payment instructions for forced debiting of the debtor’s funds or electronic money through AEPS.
Different rules apply to different types of assets: funds in hryvnias are debited according to the NBU Instruction on cashless payments; funds in foreign currency according to a separate provision of the National Bank; electronic money according to the NBU Regulation on electronic money issuance.
Until full electronic interaction is launched, payment instructions in hryvnias will be sent to the claimant’s bank via electronic channels on the next business day after creation, while documents regarding foreign currency and electronic money will still be sent in paper form by mail. After full electronic interaction is implemented, this process will become fully digital.
Electronic money is equated with regular funds
Another important change concerns electronic money. Previously, the mechanism for working with such assets was quite limited and caused many practical questions. Now the Procedure explicitly provides for the possibility of arresting electronic money, debiting electronic money, and their forced realization by presenting for redemption with subsequent transfer of the received funds to the account of the state enforcement service or private enforcement officer.
Effectively, electronic money becomes the same object of enforcement as funds in bank accounts. This means that using electronic wallets no longer guarantees avoidance of enforcement of court decisions.
What risks may arise
Despite the obvious advantages of digitalization, the new procedure is not without potential risks. Primarily, these concern the technical aspect. The document effectively imposes on banks, non-bank payment institutions, and electronic money issuers the obligation to operate in constant electronic interaction mode with the automated enforcement proceedings system.
If technical failures, communication interruptions, or errors in information systems occur, this may affect both the speed of court decision enforcement and the timely lifting of arrests after debt repayment.
The Ministry of Justice Order No. 1837/5 is a logical continuation of the digitalization of enforcement proceedings initiated by Law No. 4833-IX. The document effectively creates a unified digital mechanism for asset search, arrest imposition, forced debiting of funds and electronic money, as well as automatic lifting of arrests after decision execution.
For the state and claimants, this means faster enforcement of court decisions, reduced paper document flow, and increased efficiency of the enforcement service. For financial institutions, it means the need to operate in constant electronic interaction mode with AEPS and ensure prompt compliance with new requirements.
The first months of applying the updated procedure will show whether digitalization truly shortens enforcement times and makes enforcement proceedings more effective or requires additional regulatory and technical refinement.
It should be noted that legislation and recent Ministry of Justice orders establish clear reservations and restrictions regarding forced debiting and arrest imposition, especially under martial law conditions. Not all funds can be debited, and not all property can be arrested.
For individuals, a mechanism has been introduced to preserve part of the funds for living expenses. An individual debtor can make expenditure transactions from one current account in one bank up to an amount not exceeding two times the minimum wage as of 01.01.2026 per month. Seizure of these funds within the specified amount is not carried out.
Previously, the "Judicial and Legal Newspaper" reported on debtor rights, spending limits, and the procedure for lifting arrests.
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