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National Bank of Ukraine Contests Unlawful Actions of Public Registrars and Stops Fraudulent Scheme of about UAH 25 Million

14 May 2018

Press Release


The National Bank of Ukraine (NBU) informs that timely and responsible decisions of the Ministry of Justice of Ukraine in response to the NBU reports put an end to unlawful actions of public registrars.


The Ministry has stopped a fraudulent scheme that caused misappropriation by the third parties of a building in the center of Poltava city of UAH 24.8 million pledge value that VAB Bank PJSC owned as a private property.


In June 2014, the bank mortgaged the building to the NBU, whereof a respective record was made in the state register of titles.


However, on 27 March 2018, the NBU became aware that the aforesaid building was illegally released from the right of claim and reregistered to a private company.


At the same time, the application for registration was seemingly filed by VAB Bank PJSC. But, an authorized employee from the Deposit Guarantee Fund (DGF) informed that no such application for registration were filed.


It should be noted that termination of mortgage and restriction to alienate real estate for further alienation without the NBU’s consent as a mortgagee is a direct violation of the NBU rights and legal interests prescribed in Article 9 paragraph 3 of the Law of Ukraine On Mortgage.


Thus, the NBU reported to the Ministry of Justice of Ukraine decisions made by public registrars on the building and demanded to reinstate records on mortgage and right of claim to the property of VAB Bank PJSC and restrictions on alienations.


On Friday 4 May, the Grievance Commission on State Registration Issues with the Ministry of Justice of Ukraine reviewed the NBU complaints and ruled for the NBU.


Last modification   14.05.2018