The improvement of the domestic payment system is an integral part of the financial sector reform agenda.

With the aim of implementing the requirements of applicable Ukrainian laws and streamlining the procedure of opening and closing of business entities' accounts, the National Bank of Ukraine has developed a Draft Resolution of the Board of the National Bank of Ukraine On Amendments to the Instruction on the Procedure of Opening, Use and Closing of Accounts in Domestic and Foreign Currencies (hereinafter – the Draft Resolution).

The Draft Resolution is intended to reduce the number of documents to be submitted by business entities to the bank to open accounts with Ukrainian banks, which would primarily reduce transaction costs and simplify doing business in Ukraine.

It is stipulated, inter alia, that the requirement set out in the Instruction on the Procedure of Opening, Use and Closing of Accounts in Domestic and Foreign Currencies approved by NBU Board Resolution No. 492 of 12 November 2003 that obliges business entities to submit a copy of an entry from the Unified State Register will be repealed, whereas banks will be required to obtain information about the client from the Unified State Register.

In addition:

• the possibility is envisaged for a bank to  handle client legal files for client accounts opening electronically;
• Instruction No. 492  has been brought into conformity with the Law of Ukraine On Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime, Terrorist Financing and Financing of Weapons of Mass Destruction with regard to the client identification and  verification by the bank (a bank is obliged  to verify the client's identity by checking  identification details obtained from the client and the validity of official documents submitted by the client];
• Instruction No. 492 has been brought into conformity with the Law of Ukraine On Amendments to the Tax Code of Ukraine (regarding simplification of doing business procedures) with respect to the streamlining of the procedure of maintaining records of taxpayers’ accounts by  the controlling authorities (the introduction of the principle of tacit consent in case of non-receipt of a notice from the controlling authorities notifying the business entity that the business entity’s account has been entered into the register of taxpayers’ accounts);
• Instruction No. 492 has been brought into conformity with the Law of Ukraine On Amendments to Certain Legal Acts of Ukraine (concerning the terms and conditions of time deposits return) with respect to determining the terms and conditions of premature withdrawal  of customers' time deposits [The Law denies customers the right to  withdraw time deposits before  maturity upon their first request];
• with a view to liberalizing the foreign exchange regulation, the scope of  individuals’ current accounts (residents' and non-residents' current accounts in foreign currency) has been expanded;
• the procedure of opening accounts for non-resident investors has been simplified with respect to certifying the authenticity of a signature on the card  through the signature verification against the specimen signatures;

the procedure of closing accounts for clients that have an executory foreign trade contract (based on the proposals put forward by the Open Market Operations Department).

Given the importance of the proposed changes, the National Bank of Ukraine has launched a public consultation on the Draft Resolution.  Please send your proposals and comments by mail or email of the National Bank of Ukraine by September 03, 2015.

Postal address:  01601, Instytutska St. Kyiv, 9, Payment Systems Department of the National Bank of Ukraine.

E-Mail: 25PLAS@U0H0, [email protected].