The National Bank of Ukraine has expanded the grounds for conducting inspections to verify banks’ compliance with foreign exchange regulations and revised the rules governing bank inspections.
The appropriate amendments to this effect have been approved by NBU Board Resolution No. 383 of 7 September 2016 On Amendments to Some NBU Regulations.
The resolution has amended the Regulation on the Procedure for Conducting On-Site and Off-Site Inspections to Verify the Compliance by Banks, Other Financial Institutions and the National Postal Operator with FX regulations, and Carrying out Inspections of Currency Exchange Offices Operating in Ukraine approved by NBU Board Resolution No.338 and registered with the Ministry of Justice of Ukraine on 26 October 2007 as No.1220/14487.
In particular, in accordance with amendments, information on possible violations of banking legislation on compliance or information on bank’s involvement in risky activities shall constitute the grounds for conducting inspections.
To enable broader application of state-of-the-art technologies inspections can be conducted not only through the examination of paper-based documents (their copies) but also through gaining access to e-documents, their copies or by converting e-documents into paper form.
The Regulation has a separate chapter containing provisions on inspections conducted to verify compliance with the established procedure for arranging and performing foreign exchange operations.
Additionally, amendments were made to the Regulation on Controls Exercised by Authorized Banks over FX Operations Performed by Residents and Nonresidents Targeted by Special Sanctions in accordance with Article 37 of the Law of Ukraine On Foreign Economic Activities approved NBU Board Resolution No. 198 of 21 May 2003 and registered with the Ministry of Justice of Ukraine on 9 June 2003 as No.463/7784, which specified information to be submitted to the bank regarding the lifting of special sanctions applied against the bank’s customer or its counterparty.