Ukraine expands Ministry of Justice powers: new access to banking secrecy during wartime and international disputes
On July 27, 2025, the President of Ukraine signed the Law of Ukraine “On Factoring,” introducing significant amendments to the Law of Ukraine “On Banks and Banking Activities.” From now on, the Ministry of Justice of Ukraine has the right to directly request banks for information constituting banking secrecy when it comes to defending the interests of the state in international arbitrations, foreign courts, and jurisdictional bodies.
Article 60 of the Law “On Banks and Banking Activities” has been supplemented with a provision allowing such data to be provided upon a written request from the Ministry of Justice for the period of martial law and for two years after its termination.
“Banks are obliged to provide information constituting banking secrecy at the written request of the Ministry of Justice of Ukraine in order to ensure representation and protection of Ukraine’s interests in cases where the state is a party, in foreign jurisdictional bodies and international arbitrations. This provision is valid during martial law and for two years from the date of its termination or cancellation.”
Previously, even with the mandate to represent the state in foreign courts, the Ministry of Justice did not have access to banking secrecy without a court decision or other special grounds. This significantly complicated the preparation of evidence in complex disputes especially in cases involving compensation for damages caused by the aggressor state or the movement of assets abroad.
The legal logic of these changes is as follows:
- The state must be an equal subject in international proceedings, which is impossible without prompt access to key banking data serving as evidence in asset-related disputes or violations.
- The existing legislation did not provide an adequate mechanism the restrictions established by Article 60 of the Law “On Banks and Banking Activities” allowed disclosure only for certain government bodies and exclusively based on a court decision or within criminal proceedings.
- The new law establishes a special procedure solely for wartime and a limited postwar period, which minimizes the risk of abuse.
Balancing Rights: State Interests and Citizens’ Privacy
Banking secrecy is one of the fundamental guarantees of privacy in Ukraine, enshrined in both the Law “On Banks and Banking Activities” and the Constitution of Ukraine (Article 32). However, the Constitution provides for the possibility of statutory limitations of rights during martial law, if this is necessary in the interest of national security and the protection of others’ rights.
As a lawyer, I emphasize:
- The new powers of the Ministry of Justice are not absolute: they apply only when the state has the procedural status of a party in an international or foreign dispute.
- The law sets clear timeframes for this norm: martial law and two years after its termination, complying with the principle of proportionality.
- Access is not granted to all banking data, but only to information directly relevant to court or arbitration proceedings protecting state interests.
Practical Consequences and Risks
Positives:
- Ukraine gains a real mechanism to defend state interests especially in cases involving the aggressor country or international sanctions.
- The Ministry of Justice can now timely and fully collect evidence regarding financial flows, asset ownership structures, asset disposal, or schemes for moving funds abroad.
Risks and Safeguards:
- The possibility of abuse is minimized thanks to the procedural framework (only in cases involving the state), the temporal limitation of the norm, and oversight by banks and the National Bank of Ukraine.
- Legislation does not allow for disclosure of data for personal reasons or in commercial or political interests of third parties.
- Access to banking secrecy does not mean automatic disclosure: all obtained information remains protected by law, and disclosure occurs solely within judicial or arbitration proceedings.
The new powers of the Ministry of Justice to access banking secrecy are a necessary but entirely logical and lawful step in response to the challenges of wartime. The law provides the state with an effective tool to defend national interests internationally, without destroying the principles of privacy but only adjusting them for the period of extraordinary circumstances.
If martial law is lifted in the future, the effect of this norm will automatically cease after two years. Outside of the defined circumstances, access to such information will remain prohibited.
This approach is an example of legal adaptation to extraordinary challenges, maintaining the balance between the public interest and citizens’ individual rights.
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