Opening accounts for Ukrainian refugees abroad

As a result of russia’s military aggression against Ukraine, millions of ukrainians were forced to go abroad, most of them internally displaced, mainly to Europe. According to the UN, as of July 2022, the number of refugees from Ukraine after February 24 has already exceeded 9 million people. As of July 11, there are 5.7 million Ukrainian refugees in Europe. Among them: 2.1 million Ukrainians are in Poland, about 380 thousand Ukrainian refugees arrived in the Czech Republic and about 80 thousand in Slovakia.

Can a refugee from Ukraine open an account abroad?

Upon arrival in another country, in addition to the issues that arise when issuing documents confirming the legal stay of a person within the country, one of the most common problems that both refugees and temporary migrants face is money transfers and opening foreign accounts.

Ukrainian legislation does not restrict the ability of citizens of Ukraine to open accounts in foreign banks or international payment systems. An account opened abroad in a foreign bank or an international payment system gives a person the opportunity to transfer/receive appropriate funds, including material assistance, make settlements in the host country or on the Internet and use the funds at his own discretion.

The requirements and procedure for opening an account abroad depend not only on the jurisdiction in which an individual wants to open a bank account, but also on the internal policy of the chosen bank. In some countries, in particular in Europe, banks require the future client to provide an individual tax number, which must be obtained in the host country. It is also mandatory for banks to check the source of origin of the person’s funds entering the account in order to confirm the legality of their receipt and indicate the person’s purpose for opening a bank account.

Which European banks can easily open accounts for refugees?

Looking at the political situation in Ukraine, European countries and banks, expressing solidarity with Ukrainian refugees and temporary internally displaced persons, have simplified and introduced more loyal procedures for opening accounts for Ukrainians abroad.

In particular, some banks in Poland have simplified the procedure for opening accounts for Ukrainians and canceled the collection of commissions from internally displaced persons for opening and maintaining accounts among such banks:

• Millenium Bank;
• Santander Bank.

Loyal to Ukrainians are also some banks in Slovakia, which do not charge fees for servicing current accounts for refugees and require a simplified list of documents for opening accounts (passport and a document confirming refugee status):

• Tatra banka;
• Slovenska sporitelna.

Among Czech banks that do not charge a service fee and open an account in which you can if you have a passport, stands out:

• СSOB.

What documents do banks ask for?

To open an account in a foreign bank, internally displaced persons from Ukraine are required to provide a standard package of documents:

• international passport;

• document on registration of place of residence;

• permission to legally stay in the country.

It should be noted that when opening an account in a foreign bank by Ukrainians abroad, the personal presence of a person and the presentation of original documents are mandatory.

To open accounts in some European banks, it may be necessary to go through the procedure of verifying the identity and source of funds, so refugees and temporary migrants need to know banks that are more loyal to Ukrainians and simplify the conditions for opening accounts or consider an alternative to bank accounts – international payment systems.

Account in the payment system – an alternative to banks

Payment systems are financial companies licensed to carry out foreign exchange transactions. Licensed payment systems are characterized by a simplified customer identification procedure, the ability to remotely open and manage an account.

It is better to use payment systems if you do not have a direct need to open a bank account, receive a physical card, but there is a need for quick and simplified receipt of transfers to and from the account.

Among the payment systems that a refugee can use to open accounts, the following services should be highlighted:

• Revolut;
• SatchelPay;
• Wise;
• Paysera;
• PayPal.

These services freely allow their user to open an account with details remotely after passing online identification of an individual, instantly receive a virtual bank card, make money transfers and accept payments, convert currencies and make daily payments. Some payment systems, showing support for Ukrainians, open accounts for citizens from Ukraine for free, and also reduce commissions for servicing, transfers and other financial services.

Under the current conditions, neighboring states are making significant efforts and supporting Ukrainian refugees and internally displaced persons. In particular, they allow opening accounts in foreign banks with a simplified list of documents and no commission for opening and servicing accounts. European financial institutions regularly review and continue the preferential conditions for Ukrainian refugees, taking into account the continuation of military aggression. International banks and payment systems are ready to meet Ukrainians and help make their financial settlements as convenient as possible on the territory of foreign countries. At the same time, as a sign of condemnation of russia, many financial institutions refuse to serve clients from the aggressor country in order to also show support for Ukraine at the international level.

Every Ukrainian citizen can now use the services of European banks or payment systems, you just have to be aware of where the most loyal conditions are offered that meet your needs and goals.