Given amendments to applicable legislation and commitments undertaken by Ukraine in accordance with the Memorandum of Economic and Financial Policies, as well as taking into account high related-party exposure, the National Bank of Ukraine is conducting an inspection of banks’ related-party transactions pursuant to NBU Board Resolution No 314, dated May 12, 2015 On Measures to  Bring Banks’ Asset-side Transactions with Related Parties in Compliance with Regulatory Requirements (hereinafter – Resolution No. 314).

With the aim of exercising control over banks’ compliance with Resolution No.314 and specifying the requirements as to the action plans to be drafted by banks to  bring banks’ asset-side transactions with related parties in compliance with regulatory requirements (hereinafter – the Action Plans), the Board of the National Bank of Ukraine adopted Resolution No. 506 On Approval of the Regulation on the Commission for the Inspection of  banks’ related-party transactions  (hereinafter – Resolution No.506).

Pursuant to Resolution No.506, the Commission for the Inspection of banks’ related-party transactions is established to perform the following functions:

• to coordinate the inspection of banks’ transactions with related parties, which is conducted by audit firms based on the results of supervisory procedures;
• to analyze information on banks’ transactions with related parties;
• to determine whether the banks’ action plans are appropriate.