On December 3, 2014, NBU Board Resolution "On the Approval of the Regulation on the supervision (oversight) of payment systems and settlement systems in Ukraine” (hereinafter – the Regulation on the oversight) came into force.

The Regulation on the oversight determines the principles and procedure for carrying out the oversight of payment systems by the National Bank of Ukraine, criteria and procedure for classifying payment systems in terms of their importance, and establishes the requirements for the operation of payment systems in Ukraine.

The Regulation on the oversight is designed to bring the payment systems operating in Ukraine into compliance with the international standards adopted by the Committee for Payment and Settlement Systems of the Bank for International Settlements and the Technical Committee of the International Organization of Securities Commissions in order to enhance operational reliability and efficiency of payment systems and mitigate systemic risks.

In accordance with applicable laws, the objects of oversight in Ukraine shall be:

• payment institutions of payment systems;
• participants in/members of payment systems;
• operators of payment infrastructure services.    

The National Bank of Ukraine shall oversee payment and settlement systems by:

• monitoring payment systems;
• assessing payment systems;
• providing guidelines on how to improve the operation of payment systems and apply coercive measures against the objects of oversight in the event of breaches of applicable laws.

The National Bank of Ukraine shall determine systemically important payment systems in Ukraine (systemically important, socially important and important) twice a year according to the criteria set out in the Regulation on the oversight.

The payment institutions of payment systems identified by the National Bank of Ukraine as systemically important are obliged to bring their operation into compliance with the requirements with regard to:

• the governance and operation of the payment institution;
• access and participation in the payment system;
• risk management framework: legal, financial (credit, liquidity, overall commercial, depository, and investment risks), settlement, operational, and systemic risks;
• ensuring the smooth operation of the payment system, etc.

 Pursuant to item 3 of NBU Board Resolution No. 755, dated November 28, 2014, payment institutions of payment systems and participants in/members of payment systems are obliged to bring their activities into compliance with the requirements set forth in Section XIIІ of the Regulation on the oversight within 120 calendar days from the entry into force of this Resolution.

In order to enhance transparency of the operation of payment systems in Ukraine, payment institutions of payment systems are placed under obligation to publish information on their official website and regularly update information about:

• registration of the payment system in the register of payment  systems, settlement systems, participants in these systems and operators of payment infrastructure services, which is maintained by the National Bank of Ukraine;
• the organizational structure of the payment system and governing bodies of the payment institution;
• the services rendered to the users and their costs;
• the terms and conditions for participating in the payment system and a list of participants, etc.

In order to protect consumers' rights, participants in the funds transfer systems, as well as payment institutions of funds transfer systems created by residents are obliged to publish information on their official website and distribute the updated information on the bulletin board at the outlets for acceptance/payment of money transfers about:

• the services provided by the money transfer system, and their costs;
• the procedure, terms  and conditions for executing funds transfers;   
• currencies in which funds transfers are executed and exchange rates;
• the procedure for settling disputes between the participants in payment systems and their users, etc.

Pursuant to the Regulation on the oversight of payment systems, the legal entities that have not been registered by the National Bank of Ukraine are not allowed to use the terms “payment system”, “settlement system”, “funds transfer system” and the words derived from these terms.

The oversight of international payment systems created by non-residents with regard to their operation in Ukraine shall be carried out in accordance with the international standards of joint oversight established by the Bank for International Settlements.