Fintech and crypto businesses are under heightened scrutiny from banks, regulators and law enforcement. Blocked accounts, source-of-funds requests, searches and asset freezes are not the exception for such companies but a risk worth preparing for in advance. Moreover, the regulation of virtual assets in Ukraine is still taking shape.
We help payment services, crypto projects and exchangers build KYC/AML procedures, put their handling of personal data in order and prepare for inspections. If pressure has already begun, a lawyer helps defend the company, its managers and employees in criminal proceedings — from the first search to court.
Typical legal issues
Blocked accounts and bank requests
Banks and payment institutions may suspend transactions and demand documents on the source of funds. Without prepared explanations and documents, unblocking takes longer.
Insufficient KYC/AML procedures
Formal or missing rules on customer identification and financial monitoring give grounds for claims from counterparties, banks and state authorities.
Searches and asset freezes
Companies in high-risk sectors more often become involved in criminal proceedings — sometimes merely as witnesses or owners of property. Without a lawyer present during a search, it is easy to lose equipment, documents and access to funds.
Uncertain regulation of virtual assets
The rules for dealing with virtual assets in Ukraine are changing, so the business model and documents need to be checked regularly against current legislation.
Data leaks or unlawful processing
Fintech handles large volumes of personal and financial data. Breaching the requirements for processing it exposes the business to client claims and liability to regulators.
How we help
- We draft internal KYC/AML and financial monitoring rules tailored to the business model.
- We help prepare explanations and documents for banks and payment institutions when transactions are blocked.
- We draft privacy policies, user agreements and personal data documentation.
- We analyse the business model in light of current regulation of virtual assets and payment services.
- We ensure a lawyer is present during searches and other investigative actions.
- We challenge freezes of property and funds and defend managers and the company in criminal proceedings.
- We prepare an action plan for the team in case law enforcement officers visit.
Frequently asked questions
Does a small crypto project need KYC/AML procedures?
The scope of the requirements depends on what activities the project carries out and where it operates. But even a small team should have basic customer due diligence rules: banks, payment partners and counterparties ask for them.
What should we do if the bank has blocked the company’s account?
First, find out the grounds for the block and the list of documents the bank is requesting. A lawyer will help prepare explanations and source-of-funds documents and, if the bank is acting unlawfully, challenge its actions.
How can we prepare for a possible search?
Decide in advance who on the team calls the lawyer, where key documents are kept and how employees should act until the lawyer arrives. We help draw up such a protocol and brief the team.