The National Bank of Ukraine has developed arrangements for implementing a resolution of the National Security and Defense Council of Ukraine of September 2, 2015 on the application of personal special economic and other restrictive measures (sanctions), which was enacted by Decree of the President of Ukraine No. 549/2015 of September 16, 2015. The arrangements are set forth in NBU Board Resolution No. 654, dated October 1, 2015 On Ensuring the Application of Personal Special Economic and Other Restrictive Measures (Sanctions) and Overseeing the Proper Enforcement Thereof.

It should be noted that the resolution of the National Security and Defense Council of Ukraine  clearly sets forth which restrictive measures shall be applied in each case. These sanctions include asset freezes,  suspension of performance of economic and financial obligations, a ban on doing business, suspension of performance of economic and financial obligations (the prohibition to provide credits, loans, financial assistance, guarantees, a ban on lending through purchases of securities, a ban on purchases of securities, the prevention of capital outflows abroad, etc.).

The NBU Board resolution to this effect sets forth the guidelines governing the application of sanctions by banks and the exercise of oversight of the proper enforcement thereof.

Thus, the National Bank has obliged banks within a three-day period to provide information on bank accounts held by 388 individuals and 105 legal entities included in the sanction list indicated in annexes to the Resolution of the NSDCU and the balances of accounts. Banks are required to submit monthly to the National Bank information about the balances of accounts held by individuals and legal entities included in the sanction list and notify the regulator of any attempts by them to perform financial operations.

The resolution shall remain in effect throughout the period when sanctions are in force.

The resolution shall come into force from October 2, 2015, from the day following the day of its official publication and shall remain in effect throughout the period when sanctions are in force.

As a side note, pursuant to NSDCU resolution, the Cabinet of Ministers and the Security Service together with the National Bank and the General Prosecutor Office have been assigned to ensure the application of sanctions and oversee the proper enforcement thereof.