The Ministry of Justice will introduce a system of automated seizure of debtors' funds

Submitted by bashun on Thu, 03/15/2018 - 14:10

The introduction of electronic arrest of funds on the debtor's accounts with banks and other financial institutions is one of the priority steps in the reform of enforcement of decisions and other bodies, because Ukraine has pledged to the International Monetary Fund to adopt a law that automates the process of collecting and enforcing debt collection, the website of the Ministry of Justice of Ukraine.

Now the information on the accounts of the debtor is received by sending a request to the State Fiscal Service of Ukraine. However, these data only concern legal entities and individual entrepreneurs. To obtain information about citizens' accounts, it is only possible to send inquiries to all banking institutions of the country by mail. In practice, debtors have time to withdraw funds from accounts, and sometimes the ruling is generally lost and does not go to the bank.

In order to prepare the relevant draft law, a group of Ukrainian experts, led by the Ministry of Justice, visited Croatia last November. In this country, the electronic seizure of debtors' funds held in bank accounts through the Financial Agency (FINA) was introduced from January 1, 2011. 32 banks, which at that time existed in the republic, transferred outstanding documents to FINA 654667 on the collection of funds for a total of almost 8.7 billion euros.

All uncompleted paper documents were processed and entered into the electronic system. Today the agency has information about all accounts of both legal entities and individuals, updated daily. This ensures that money is blocked in your bank accounts within a few minutes. Thanks to the introduction of innovations, Croatia, according to estimates for the World Bank's Doing Business-2017 report, rose from 52nd to 7th place.

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