During inspections of authorized currency exchange offices conducted in October 2016, the NBU uncovered 32 illegal currency exchange offices operating illegally in Kyiv.

On 1 November 2016, the NBU notified the law enforcement authorities, including the Ministry of Internal Affairs of Ukraine (MIAU), the Security Service of Ukraine (SSU) and the State Fiscal Service of Ukraine (SFSU), of the uncovered illegal currency exchange offices, seeking their prompt response.

It should be noted that the NBU is not authorized to tackle illegal currency exchange offices.  In accordance with applicable laws and regulations, tackling illegal currency exchange offices falls within the terms of reference of the  MIAU, SSU and the SFSU.

Beginning December 2016, the NBU official website will feature a special section “Illegal Currency Exchange Offices” where information on illegal currency exchange offices uncovered by the NBU will be published.

It should be noted that  a 2% levy on FX operations paid to the Pension Fund should be mainly blamed for the development of illegal FX trading by unlicensed currency exchange offices. Illegal currency exchange offices do not charge a levy on FX purchase transactions. As a result, foreign currency costs less than at a lower price than at licensed currency exchange offices. The NBU expects  a law lifting a 2% levy on FX operations to pass its second reading in parliament.