The National Bank of Ukraine has updated information on the progress in identifying and verifying banks’ beneficial owners. The updated information is available in the “Status of Beneficial Ownership Identification and Verification Process” section of the NBU’s website. The NBU has published updated information on the progress in enhancing the transparency in the ownership of Ukrainian banks. The NBU has posted information on the status of each bank that has failed to meet ownership transparency requirements set by the regulator.

So far, the NBU regards the ownership structure of 85 banks (whose total assets account for 97.21% of the banking system) as transparent.  

“Efforts are underway in 8 banks to bring their ownership structure into compliance with ownership transparency requirements. These banks have secured the NBU’s approval of their future ownership structure. The owners of these banks have obtained the regulator’s approval to acquire a qualifying holding in these financial institutions. However, these owners have yet to put the legal ownership of shares and corporate rights into their name. There is some way to go until these banks finalize the beneficial ownership identification and verification process. The documents submitted by 16 more banks are pending consideration at the NBU.  The regulator is carrying out additional verification of information submitted by another 5 banks,” said Director of the NBU Registration and Licensing Department, Mr Oleksandr Bevz.

According to him, the NBU plans to finalize the beneficial ownership identification and verification process with respect to most banks by the end of March 2016. “However, this does not mean that on 1 April 2016 those banks whose ownership structure is not yet regarded as transparent will be put into resolution. As of 1 April 2016, the regulator plans to make a decision on the documents submitted by banks seeking to undergo the beneficial ownership identification process. The NBU will apply enforcement measures against those banks that fail to meet ownership transparency requirements,” said Mr Bevz.

So far, TK Credit PJSC has been put under liquidation due to its opaque ownership structure.

The NBU continues to carry out continuous monitoring of banks’ ownership structures, including those banks that are in the final stage of the beneficial ownership identification and verification process. In particular, the regulator has initiated legislative changes intended to recognize a bank’s ownership structure as non-transparent if the bank’s owners have acquired a qualifying holding in the bank without the prior consent of the NBU.