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In 2017 the National Bank of Ukraine Conducted over 1000 Inspections of Foreign Exchange Bureaus

18 January 2018

Press Release

 

The National Bank of Ukraine (NBU), pursuant to its control function of compliance with the procedure and execution of FX operations, in 2017 conducted 1018 inspections of units (foreign exchange bureaus) of non-banking financial institutions (NBFI).

 

The inspections were conducted in Kyiv and all oblasts of Ukraine.

 

Gross violations of the procedure for FX operations detected were as follows:

·         executing FX operations without respective paperwork;

·         detecting during inspection discrepancies between NBFI till cash amounts and cash recognized on statements;

·         failure to provide documents, materials, information during inspection on request of the authorized NBU employee;

·         obstructing the inspection.

 

In 2017, for violations of the procedure for FX operations the NBU stripped one non-banking financial institution of the license to transact FX operations.

 

“The NBU pays special attention to financial monitoring, as well as implementing a risk-based policy intended to advance transparency of financial operations transacted by not just bank customers but also customers of non-bank financial institutions. Hence, in 2018, we will inspect primarily those NBFIs that showed gross violations in 2017, and that rise suspicions as to volumes of recognized FX operations”, noted Ihor Bereza, Director of Financial Monitoring Department.

 

In the course of inspecting legal FX bureaus the NBU also found 115 FX bureaus that operated illegally in Kyiv city, Donetsk oblast, Zakarpattia oblast, Zaporizhzhia oblast, Ivano-Frankivsk oblast, Kyiv oblast, Kirovohrad oblast, Lviv oblast, Mykolaiv oblast, Ternopil oblast, Kharkiv and Chernivtsi oblasts.

 

The NBU passes on the information on illegal FX bureaus to the law enforcement agencies. Cooperation with economy protection units of the National Police of Ukraine in Kyiv city, Kyiv oblast, Lviv oblast, Ivano-Frankivsk oblast, Ternopil oblast, Donetsk and Chernivtsi oblasts proved to be most effective, and they report to the NBU on efforts taken to shut down operations of illegal FX bureaus.

 

Information on illegal FX bureaus with respective photographs have been published on the official web-site of the National Bank of Ukraine in the section Illegal Foreign Exchange Bureaus.

 

Further details on NBU general licenses issued to non-bank financial institutions can be found on the official NBU web-site in the search engine Information on Licenses Issued to Non-Bank Financial Institutions and Other Legal Entities (except banks).

 

Resolution of the NBU Board No. 962 dated 1 July 2016 prescribes the operating of the Register of Premises licensed to transact foreign exchange operations or render other financial services using domestic and foreign currency cash.

 

 

Reference

 

Pursuant to the Law of Ukraine On the National Bank of Ukraine (paragraph 14, article 7) the NBU exercises foreign exchange regulation, establishes the procedure for FX operations, provides for and executes FX control over banks and other financial institutions licensed by the NBU to execute FX operations.                            

 


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Last modification   18.01.2018