With the aim of implementing  Resolution of the National Security and Defense Council of Ukraine of  16 September 2016 On the Application of Personal Special Economic and Other Restrictive Measures (Sanctions) enacted by Decree of the President of Ukraine No. 467/2016 of 17 October 2016, on 1 November 2016, the Board of the National Bank of Ukraine issued Resolution No. 399 On Amendments to NBU Board Resolution No.654 of 1 October 2015.

The resolution, inter alia, is intended to:

• require that Ukrainian banks, non-banking institutions the National Postal Operator  which are payment institutions of the national/ international payment systems  and/or their participants maintain sanctions against persons determined by Resolution of the National Security and Defense Council of Ukraine enacted by the Presidential Decrees to this effect;  
• authorize an issuing bank to identify the identity of the holder of electronic means of payment and  reject transactions involving the use of electronic means of payment held by persons targeted by sanctions;
• allow the recapitalization of subsidiary banks incorporated in accordance with applicable laws by banks against which sanctions were imposed in order to prevent Ukrainian banks from being put into resolution, which could  increase financial burden on the Deposit Guarantee Fund and the State Budget of Ukraine;  
• ban Ukrainian banks from transferring funds to the accounts  of persons targeted by sanctions and/or the accounts of Ukrainian opened with entities against which sanctions were applied if these funds are intended for the recapitalization of subsidiary banks incorporated in accordance with applicable laws of Ukraine.

The resolution shall enter into force on the day following its official publication.