The NBU approved Regulation on financial monitoring by non-Bank Financial institutions regarding provision by them of a financial service to transfer funds by Resolution No. 388 of 15 September 2016.

Mentioned Regulation was drafted according to Articles 7, 15 and 55 of the Law of Ukraine On the National Bank of Ukraine, and Articles 6,7 and 14 of the Law of Ukraine On Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime, Terrorism Financing and Financing of Weapons of Mass Destruction, and Article 11 of the Law of Ukraine On Financial Services and State Regulation of Financial Markets.

Regulation imposes requirements regarding the following:

• analysis by a non-banking financial institution of financial transactions that are subject to financial monitoring or with regard to which there are sufficient grounds to suspect that they are connected with, related to or intended for terrorism financing or financing of weapons of mass destruction;
• internal documents regarding financial monitoring issues;
• identification, verification of customers (representatives of customers), learning the customers, clarification/additional clarification of information on the customers;
• ensuring risk management of criminal proceeds legalization/terrorism financing;
• stopping and resumption of financial transactions and implementation of decisions (instructions) of the specially authorized body;
• approval of officer of non-banking financial institution responsible for financial monitoring.

The Resolution enters into force on the day following its official publication.

Non-banking financial institutions are obliged to bring internal documents regarding financial monitoring issues in line with requirements of the regulation within three months after day of coming into effect of the resolution.

The NBU plans in the nearest future to launch training seminars for non-banking financial institutions to consult on application of requirements of the regulation in practice.