On 7 June 2016, the Board of the National Bank of Ukraine issued  Resolution No. 340 On Amendments to the Regulation on the Rules Governing the Execution of  Remittance Orders by Banks, Forced Writing-off and Seizure of Funds in Foreign Currencies and Banking Metals  (hereinafter – Resolution No. 340).

Resolution No 340 sets out the rules to be followed by authorized banks to comply with the requirement set by the NBU mandating them  to debit, without any right to appeal, funds in foreign currencies and banking metals from the debtor bank’s correspondent account.

In accordance with the amended Law of Ukraine On the National Bank of Ukraine (Article 73), the NBU is authorized to debit from the debtor bank’s accounts, without any right to appeal,  amounts owed to it by a debtor bank under refinancing agreements.

In view of the aforementioned amendments, the Regulation on the  Rules Governing the Execution of  Remittance Orders by Banks, Forces Writing-off and Seizure of Funds in Foreign Currencies and Banking Metals, approved by  NBU Board Resolution No.216, dated 28 July 2008 has been supplemented with a new chapter setting out the rules  mandating an authorized bank to debit, without any right to appeal, funds in foreign currencies and banking metals from the debtor bank’s correspondent account.

Resolution No. 340 comes into effect from 11 June 2016.